KNS - LLP (Limited Liability Partnerships) Deck

Question 1

1 - What is an LLP AKA a limited liability partnership?

Answer 1

An LLP is typically a general partnership where ALL of the partners have limited liability. In general, you apply general partnership rules to LLPs, with the exception of the materials in this flashcard deck.

Question 2

3 - How do you form a limited liability partnership? (LLP)

Answer 2

In order to form a limited liability partnership, you must file a “statement of qualification” with the SOS.

Question 3

4 - In order to form a limited liability partnership, you must file a “statement of qualification” with the SOS. What does this statement of qualification include?

Answer 3

It requires minimal information including

1. the name and address of hte partnership
2. a statement that the partnership elects to be an LLP
   and
3. a deferred effective date, if any.

Question 4

5 - When does a partnership become an LLP?

Answer 4

A partnership becomes an LLP at the time of filing the statement of qualification or on the date specified in the statement.

NOTE - UNLESS THE STATEMENT OF QUALIFICATION is filed, there is no LLP.

Question 5

6 - What must the name of an LLP include?

Answer 5

The name of a limited liability partnership must end with the words “registered limited liability partnership,” or “limited liability partnership,” or L.L.P. or LLP or R.L.L.P or RLLP.

Question 6

7 - What liability does a partner in an LLP have?

Answer 6

A partner in an LLP is not personally liable (directly, indirectly, or by way of contribution) for the obligations of the LLP, whether arising in tort, contract, or otherwise. As always, however, a partner remains personally liable for her own wrongful acts.