Limited Liability Partnership

A limited liability partnership is a form of joint corporate organization. A limited liability partnership provides that losses resulting from liability are limited to capital invested. Therefore, in a limited liability partnership each partner's liabilities may only amount to the extent of his or her investment in a given business venture. That means that no partner of a limited liability partnership will sustain looses to personal assets. It also means that a limited liability partnership will shield a partner from any tax, debt, or other liability that may be imposed by negligent acts or malpractice of other partners. Partners of a limited liability partnership are not entitled to receive dividends. However, a limited liability partnership structure is often preferred because in a limited liability partnership co-owners are each at liberty to isolate themselves from company debt liability.