The term “LLP” stands for Limited Liability Partnership. The Limited Liability Partnership is a business structure that is used by a lot of businesses across different states in the United States today. By now you’re probably wondering, what is the advantage of a Limited Liability Partnership? If you are interested in learning about this business structure, then this article is for you. Here, you will learn about the pros and cons, and the different tax issues of this business structure.
What’s an LLP All About?
An LLP differs from conventional corporate structures in a number of ways. Nonetheless, it is largely based on the principle of collaboration. Sharing responsibilities can help you expand an organization with individuals who share your vision, as well as relieve some of the tremendous stress that comes with owning and operating your own business. This is, of course, just one of several advantages of an LLP.
The concept of “limited liability” is a core aspect of an LLP’s mission. Because an LLP is a legal entity, it establishes limited liability for the partners who own it in the event of a lawsuit or bankruptcy. As you might expect, if you want to maintain your personal financial health while running a business, this is a good strategy.
The Benefits Of An LLP
The advantages of a partnership are kept in an LLP. You can manage your firm with your partners on a day-to-day basis and engage into a profit-sharing agreement with them. You’ll also get the benefits that come with the concept of “limited liability.” This means that if one of your partners commits malpractice or wrongdoing that harms your company, you will not be held personally accountable. In other words, any court judgments will not affect your own assets (house, 401k, etc.).
For licensed professionals, for example, limited liability partnerships make the most sense. Because of the risk mitigation feature, doctors, lawyers, and dentists prefer LLPs. In some cases, several jurisdictions only allow licensed professionals to form LLPs; this will, of course, depend on each state’s regulations.
The Pros Of Using Our Corporate Center Forms
Once you’re confident you have all the necessary information and you’re ready to venture into the world of limited liability partnerships, there are several options available for your convenience and ease of mind. You can get a blank form from your Secretary of State’s office, fill it out in ink, gather all the necessary papers, then mail it back to them. But, let’s face it, you’re probably far too busy for that kind of thing.
Here at Corporate Center, one of our main goals is to assist busy entrepreneurs such as yourself. We are a well-established private service provider throughout all of the U.S. We provide easy-to-complete web forms for LLP registrations and more. Take a look around our website; you’ll notice that we provide useful services in all 50 states. We also use SSL-encrypted web security, so you can rest assured that your information is being delivered safely. Contact one of our customer service professionals today to learn more.
Can I Form a Limited Liability Partnership?
Make sure to check for eligibility before you start the process of forming a limited liability partnership. Unfortunately, LLPs are not available in every state, unlike limited liability companies (LLCs). They are not usually available to all types of businesses in the states that do offer them. With all of this in mind, it’s a good idea to learn about the legislation in your area. Also, like we mentioned before, LLPs might be better suited for specific professions such as architects and doctors. Actually, some states actually require licensed professionals to form LLPs rather than LLCs because of the special liability protections provided to them. You may always contact us at the Corporation Center if you have further questions regarding the early phases of your business development.
Taking All Of This Into Account…
When starting a business, one of the first decisions that needs to be made is the choice of legal structure. Among the three most common business structures available are sole proprietorship, partnerships, and corporations. Each structure comes with its own unique set of advantages and taxes, and if you are a small business owner, it is important to understand the tax implications of your decision.
If you’re starting a business, you probably have a lot on your plate. You may feel as if there is so much to accomplish that there aren’t enough hours in the day. Finding all of the paperwork needed to form an LLP and mailing it to the relevant office in your state can be time-consuming. Fortunately for you, there is an easier way.
We are a private service at the Corporation Center that assists business owners like you in filing their LLP registrations online. You can submit your business filings online in a matter of minutes by filling out simple web forms.