The LLP Abbreviation Explained

Whether you are already a business owner or are considering starting a business, it is important that you are aware of the meanings of common abbreviations, as you are likely to encounter them frequently. Different businesses have different endings in their formal name. Usually these are abbreviations of some sort, and they can give clues about how a business operates. Many of us hear these abbreviations frequently, yet are unaware of all the implications they make about a business.

Understanding LLPs

LLP is one of several common abbreviations used in business names, and it stands for “limited liability partnership.” In comparison with other business types, LLPs function in the following ways:

• LLPs are a type of partnership, and those who have ownership in it are partners.
• As the name implies, the partners in an LLP have less liability than in other partnerships. For instance, they are less likely to be held responsible for improper conduct on the part of another partner.
• The limited liability of partners is a trait that LLPs share with corporations, but they are also quite different from corporations. LLPs do not have voting shareholders or a board of directors.
• The exact nature of LLPs can vary from state to state. For instance, in Nevada, Oregon, New York, and California, only professional groups such as law or architecture firms may form LLPs.

Understanding the term LLP can aid you in starting your business and it can also give you insight into companies that operate as LLPs.

Contact Us

If you have any questions regarding LLPs, or if you wish to create one, the Austin business attorneys of Slater, Kennon & Pugh, LLP, are happy to assist you. Contact us at 512-472-2431 to speak with any of our knowledgeable business lawyers.