Limited Liability Partnership (LLP)

A partnership structure offering personal asset protection to all partners while maintaining partnership tax treatment. LLPs are particularly popular among professional service firms, allowing partners to be protected from other partners' negligence or misconduct.

Consider a law firm with 20 partners operating as an LLP. Each partner is protected from personal liability for the professional mistakes of other partners, while maintaining management rights and profit sharing. If one partner faces a malpractice claim, other partners' personal assets remain protected.

Operating an LLP requires attention to registration requirements, insurance coverage, and partnership agreements. Organizations must maintain compliance while managing professional relationships.