A limited liability partnership, or LLP, is a business structure designed for partners who want a voice in managing their firm, but do not want to share liability. Generally speaking, a partner in an LLP is not responsible for the debts or liabilities of the other partners however in many states, the liability protection is less than what is offered to Limited Liability Companies (LLCs)

LLPs are most often used by licensed professionals such as attorneys and accountants when they are prohibited from forming an LLC or corporation.

To form an LLP, the partners are required to file or register with their appropriate state agency and pay a filing fee

• No extra tax filing requirement, as profits or losses can be reported on the owner’s tax return (pass through taxation)
• Allows owners to limit their liability when an LLC or corporation is not an option

• Most states limit LLP formation to certain professional service businesses
• Generally it is not possible to raise money from outside investors with an LLP
• Many states impose required insurance for LLPs
• More difficult to transfer ownership as the business of partnership cannot be sold whole.