The Limited Liability Partnership is a popular form of business structure amongst professionals like attorneys, accountants, and architects. Some states, for example, allow only members of certain approved professions to form an LLP for a specified professional use (California, Nevada, New York, and Oregon). Other states don’t offer the LLP business structure at all.
Similar to an LLC, and contrasting from an General Partnership, the individual members of an LLP are NOT personally liable for the acts of the other partners…in most cases and jurisdictions. Other states have enacted laws that strictly limit the amount of protection the members receive.
Profits and Losses
Similar to an LLC, the profits of an LLP are allocated among the partners for tax purposes, based on each member share of ownership or as defined in the LLP’s operating agreement.