I asked my business partner Megan Hughes to fill me in on the differences between LPs, LLPs and LLLPs. She did better than that, she wrote a series of articles about each one of them. I’m running into these more and more in my business. For example, a law firm just advised a Florida-based client to put an umbrella LLLP in place. After a couple of phone calls, we determined that the LLLP didn’t provide anymore or better protection for them than a regular LP would, and the state recurring fees would be TEN TIMES as much. Plus, of course, the fee to set it up would be much higher.
A few more Ls won’t make the business better, or safer. On the other hand, there are specific uses for LLPs and LLLPs, just make sure your circumstance fit the bill! In most cases, the only people who should consider LLPs or LLLPs are professionals who are trying to limit liability from the acts of their fellow professionals. For example, medical practices often use LLPs or LLLPs. People not engaged in a profession with partners do not need to be in an LLP or LLLP.
Here are three articles that highlight LPs, LLPs and LLLPs:
What is a Limited Partnership? (LP) http://www.legalshelfcompany.com/international/blog/what-is-a-limited-partnership/
What is Limited Liability Partnership? (LLP)
What is a Limited Liability Limited Partnership? (LLLP)
Got questions? You can find us at: https://www.ustaxaid.com/contact/