Why a limited liability partnership (LLP)?
In most cases, LLPs are best for businesses that require a state license in order to practice. Those businesses include (but are not limited to) dentists, doctors, attorneys, accountants, etc. An LLP does provide liability for debts and business responsibilities. However, the liability may not provide as much protection as an LLC, an S Corp, or C Corporations.
An LLP does provide protection against personal liability, but not comprehensively. It also provides pass-through taxation privileges. An LLP is flexible when it comes to management, but does require increased accountability for partners with day-to-day responsibilities. However, it does have minimal formal requirements for paperwork or accounting.
Important to Know:
An LLP often requires that an owner have personal liability coverage including insurance policies, etc.
What are the drawbacks:
Many states require that a professional service (such as a dentist or doctor) require an LLP, however, the benefits are not often as comprehensive as with other incorporating options.
To Get Started Incorporating as an LLP, simply complete the form below: