Limited Liability Partnership and Limited Partnerships

Limited Liability Limited Partnership (LLLP)

A type of limited partnership The difference b/w a Limited partnership and an LLLP is that the liability of the general partner in an LLLP is the same as the liability of the limited partner. that is, the liability of all partners is limited to the amount of their investments in the firm

LLPs must be formed and operated in compliance with federal law.

False

The formation of both a traditional partnership and a limited partnership requires a public and formal proceeding that must follow statutory requirements.

False

In order to form a valid limited partnership (LP), the partnership must:

File a certificate of limited partnership

What is the major advantage of an LLP?

It limits the personal liability of partners to only their own wrongful acts.

In a limited partnership, the liability of a limited partner is:

Limited to the capital contribution

What happens if a limited partner in a limited partnership participates in management?

The limited partner becomes just as liable as a general partner to any creditor

The family limited liability partnership (FLLP), is most often used in

agriculture

When a limited partnership becomes a limited liability limited partnership (LLLP), a change is made in the liability of

general partners

The two categories of enterprises for which a limited liability partnership (LLP) is especially attractive are:

professional services and family businesses.

Certificate of limited partnership

the basic document filed with a designated state official by which a limited partnership is formed

Distribution of assets of a limited partnership—order of prioritized creditors.

(1) outside creditors and partner creditors (2) partners and former partners Distribution of assets of a limited partnership—order of prioritiesed creditors. to distributions of partnership assets (3) Unless otherwise agreed, return of capital contributions and distribution of profit to partners

Family Limited Liability Partnership (FLLP)

A LLP i which the majority of the partners are persons related to each other, essentially as spouses, parents, grandparents, siblings, cousins, nephews, or nieces. All of the partners must be natural persons or persons acting in a fiduciary capacity for the benefit of natural persons

Limited Liability Partnership (LLP)

A form of partnership that allows professionals to enjoy the tax benefits of a partnership while limiting their personal liability for the malpractice of other partners

Generally speaking, a limited partnership will be dissolved if:

A general partner goes bankrupt

Limited Partnership (LP)

A partnership consisting of on or more general partners (who manage business and are liable to the fill extent of their personal asset for debts of the partnership) and one or more limited partners (who contribute only assets and are liable for only to the extent of their contributions)