2 Key Benefits of a Limited Liability Partnership (LLP)
There are many kinds of businesses that a person might want to form, each with key benefits and drawbacks. One of the more popular choices, a limited liability partnership, also known as an LLP, is commonly chosen because of the benefits it provides those who are thinking of going into business with a select person or small set of persons. In this type of business partnership, partners can enjoy a range of benefits that other forms of business do not offer them, mainly regarding each partner’s personal liability in relation to that of their partners.
2 Benefits You Need to Know about
Many people choose an LLP for their business, largely because of the benefits that its offers them regarding liability. The two central benefits that this type of business structure offers include:
- Minimal responsibility for the actions of other partners — If a partner acts irresponsibly or illegally, then only that partner is responsible for the consequences, legally and financially.
- Not being subject to malpractice lawsuits that implicate the actions of other partners — This means that they do not have to pay for the costs of such a lawsuit or any associated legal fees.
When you are considering forming an LLP, these benefits might be a considerable draw; however, you should also evaluate the effect of any potential drawbacks that might accompany such formation.
Forming a business can be exciting and fulfilling, and an LLP might be the perfect business structure for what you and your partner(s) need. In order to fully understand both the benefits and drawbacks of a partnership, or any other business type,
reach out to us. By consulting with a knowledgeable
professional at Slater Pugh, Ltd. LLP, you can feel more comfortable moving ahead in your business plans.