Main Guide: Starting a Business.
Limited Liability Partnerships (LLP) are structured as a typical partnership (including favorable tax pass-through treatment), but a LLP also offers limited liability protection to the owners that is similar to that of corporations.
Individual partners enjoy limited liability to protect their personal assets from other partners' actions or negligence. However, all partners are responsible for most obligations of the company as a whole. All partners are therefore liable for outstanding loans, expenses, partnership real estate, and vehicles owned or leased by the entity. Limited liability protection does not apply to any partner fraud or employee negligence. Additionally, should a partner be a first-hand witness of another partner's criminal deeds or negligence, the partner witness will lose their limited liability protection.
LLPs can potentially be used in many business fields, but it is primarily used by lawyers, accountants, and architects. In some U.S. States (California, New York, Oregon, and Nevada), LLPs can only be formed for such professional uses.