How to Start a Limited Liability Partnership
A limited liability partnership (LLP) shields the personal wealth of each member of the partnership, and provides protection from lawsuits that may arise from the actions of the other members of the partnership. For an existing general partnership, the LLP can provide a reasonable degree of security without necessitating the formation of a corporation. Here are the general steps to start a limited liability partnership, adapted from the 'Lectric Law Library.
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Instructions
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Contact your state government business division to find the correct legal documents for filing. Not all states require a specific form, but most do.
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Meet any insurance or licensing requirements mandated by the state. These requirements vary considerably from state to state.
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Fill in the form as required by the state. Most states require the partnership name on the form to include the words "limited liability partnership," or the abbreviation LLP. For example, Man and Sons Widgets, LLP or Man and Sons Widgets, Limited Liability Partnership.
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Remit the form with the required fee. Most states charge a flat annual registration fee for limited liability partnerships, but other states may charge a fee based on the number of partners listed in the LLP forms.
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Wait for notification of receipt and acknowledgement by the state. Once you receive the news, congratulations, your partnership is now a limited liability partnership with all of the rights and responsibilities thereof.
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Tips & Warnings
Consult your state regulations for specific forms and requirements for filing for limited liability partnership status. Also, check the amount of liability protection the state recognizes.
Please consult a tax professional, business planner or lawyer before forming a limited liability partnership. The benefits of LLP's, as well as their rules and regulations, can vary considerably from state to state.
