The limited liability partnership ("LLP") is a form of general partnership, created under state general partnership laws, in which partners are statutorily relieved of all or part of their personal liability for partnership liabilities, debts and obligations.
Although several states have enacted LLP statutes, the nature and extent of relief from personal liability and the types of business enterprises that can use the LLP form varies depending on the state of LLP formation. A Limited Liability Partnership, LLP, is a kind of business entity. It is taxed similar to a partnership (with fewer taxes compared to a company) and has the benefit of limited liability like a company. This means that the benefits of a company & a partnership are combined in the Limited Liability Partnership (LLP).The LLP resembles the limited company structure in two basic ways. Firstly, it is a corporate body with separate legal entity. Secondly, the liability of its members is limited to their contributions only.
A major advantage of forming an LLP is tax benefit. This is because the partners of an LLP pay tax on their individual incomes only and there is no Corporate Tax applied on an LLP. On the additional hand, the shareholders of a limited company pay tax on their individual incomes as well as Corporate Tax from the company's income. Forming a new Limited Liability Partnership is now a effortless, hassle free process using our online, electronic system. Formations House as well provides the fastest and most efficient service, as well as offering the most cost-effective pricing. Our online incorporation service includes:
- Hard copy Certificate of Incorporation
- The Partnership Agreement after your LLP is formed
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