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Limited liability partnership

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What is LIMITED LIABILITY PARTNERSHIP? What does LIMITED LIABILITY PARTNERSHIP mean?

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Limited Liability Partnership

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What is an LLP or Limited Liability Partnership?

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Limited Liability Partnership

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Business Law: Limited Liability Partnerships (LLPs)

A limited liability partnership (LLP) is a partnership in which some or all partners have limited liabilities. It therefore can exhibit elements of partnerships and corporations. In an LLP, each partner is not responsible or liable for another partner's misconduct or negligence. This is an important difference from the traditional partnership under the UK Partnership Act 1890, in which each partner has joint and several liability. In an LLP, some or all partners have a form of limited liability similar to that of the shareholders of a corporation. Unlike corporate shareholders, the partners have the right to manage the business directly. In contrast, corporate shareholders must elect a board of directors under the laws of various state charters. The board organizes itself and hires corporate officers who then have as "corporate" individuals the legal responsibility to manage the corporation in the corporation's best interest. A LLP also contains a different level of tax liability from that of a corporation.