Abbreviations: The LLP

If you're a business owner, you need to know the ins and outs of how businesses are shaped by their organization. The various abbreviations that follow business names represent how the company is legally organized and what benefits they receive because of it.

If you have any questions about how your business is affected by its organizational status or what the best option for your business is, contact the Austin business lawyers of Slater, Kennon & Pugh Ltd.LLP, by calling 512-472-2431.

Defining LLP

LLP stands for limited liability partnership. This designation means that means people engaged in the partnership are only subject to limited liability for the company. Unlike a traditional limited partnership, limited liability partners are generally not responsible for the misconduct or negligence of other partners. In this way, they are similar to corporations. However, unlike corporations, there are no voting shareholders, and the partners are able to run the company directly without a board of directors.

LLPs were first popularized in the wake of the Savings and Loan crisis of the 1980s, when people were trying to recover assets lost in the crisis from the lawyers and accountants who had advised the Savings and Loans banks. Because the limited partnerships were liable for huge claims, laws were passed to provide the partners a degree of protection, thus creating the first LLPs.

In some states (primarily California, New York, Nevada, and Oregon), the LLP is only available for professional purposes; that is, lawyers, accountants, and architects.

Contact Us

If you are considering creating a limited liability partnership, contact the Austin business attorneys of Slater, Kennon & Pugh Ltd.LLP by calling 512-472-2431 today.