Limited Liability Partnerships

Limited Liability Partnerships also called LLPs are a type of business entity where the partners enjoy some protection against personal liability. This type of business entity is generally for people licensed under the laws of their State to engage in the practice of public accountancy, law or architecture. The LLP is not considered a separate entity for income tax purposes like a Corporation is. Instead, all profits and losses are passed through to the partners and reported on each individual’s tax return.

Such as a General Partnership, all partners have the same exact rights when it comes to management of an LLP unless otherwise agreed. Partnerships are quite flexible as they offer a great variety of control and management structures which could be achieved by agreement of the parties.

Each partner is responsible for liabilities imposed by law arising out of his or her own acts and omissions. In addition, each partner is responsible for debts and liabilities as defined in the LLP agreement.

Let Legal Dox take all of the guess work out of having to form your Limited Liability Partnership.

For the cost of about $500.00, we can prepare a valid and legally binding Agreement for all of the Partners to sign that will keep the confusion and issues that cause problems between partners, out of the partnership.

Most States require that a Limited Liability Partnership registers with their Secretary of State which general requires a fee. In California, the fee for filing your Limited Liability Partnership is $75.00 ($70.00 for the filing fee and $5.00 to obtain a certified copy for your records).

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