Limited Partnership (LLP)
For more than 20 years, the Corporate Law Attorneys at KALIS, KLEIMAN & WOLFE have represented individuals and South Florida businesses with business law and business formations including Limited Liability Partnerships (LLP), Limited Liability Company’s (LLC), S-Corps, home based businesses, and more.
A Limited Liability Partnership (LLP) is a professional partnership that is formed by licensed professionals such as accountants, attorneys, physicians, dentists and architects. The advantages of an LLP include liability protection, tax advantages and flexibility in business ownership. Disadvantages are that LLP’s are often limited to licensed professions, and partners are not obligated to consult with other partners in certain business agreements.
In a Florida limited liability partnership, one or more general partners manage the business and are personally responsible for all of the partnership’s liabilities. Limited partners do not take part in managing the business, and if they are too active in the running of the business, they are subject to losing their “limited” partner status, and risk becoming personally liable to the business. In an LLP, one or more limited partners contribute capital and receive a share of the business profits. A Florida LLP is not subject to direct taxation as corporations are. The partners declare partnership income or loss on their individual income tax returns, effectively making an LLP a pass through entity.
There are many legal issues involved in setting up an LLP properly. It is also important to establish any appropriate agreements (operating agreements, partnership agreements, non-compete agreements, employment agreements, etc.) up front to avoid potential business disputes.
If you are looking to establish an LLP, or if you have questions regarding other business matters, or want to know your legal rights, contact the experienced Business Litigation Attorneys at KALIS, KLEIMAN & WOLFE, P.A., the South Florida-based law firm today at (954) 791-0477.