The Limited Liability Partnership(LLP)

The Limited Liability Partnership(LLP)

There is a modem variation of the general partnership，the” limited liability partnership” or”LLP”.An LLP is a general partnership in all respects expect that the statute provides that partners have no personal liability for firm obligations that exceed the assets of the general partnership. Partners in an LLP，however，have full personal liability for claiming arising from their own misconduct. The LLP has been particularly popular with law and accounting firms, but apparently has not been widely used by commercial businesses. See UPA ( 1997) § § 1001 - 1003,306(c) ,101(5).

The LLP is a recent innovation and the"shield of limited liability" it provides has not been directly tested as of 2005. However, fallen accounting firm Arthur Anderson operated in the LLP form, and the numerous claims pending against its individual members will likely provide the first test.