Limited liability partnership - Definition and Overview

In general, limited liability partnerships (LLP) are a form of business often used by law and accounting firms. Such firms are generally prohibited from forming corporations. The doctrine of limited liability means that liability for debts extends to the individual's investment in the partnership, as opposed to the case with sole traders or unlimited partnerships or companies, where owners can be held 'jointly and severally liable', up to and including their own personal possessions and even homes.

Note: "Limited liability partnership" has different detailed legal implications in different jurisdictions.

LLC v. LLP

A limited liability partnership (LLP) differs from a limited liability company (LLC) in that the LLP has the organizational flexibility of a partnership and is taxed as such, and in that all partners of the LLP remain liable for the other partners' debts and obligations.

Example Usage of partnership