LLP

Question 1

Limited Liability Partnership (LLP) - Gral

Answer 1

• Partners as shareholders
• Not recognized in all states
• Used by persons who practice under professional rules of incorporation
• Is an option for General psx to re-organize

Question 2

LLP - creation /name

Answer 2

• Filing of application + statement on qualification
• Trade name must include LLP or Limited Liability Partnership

Question 3

LLP - Contributions

Answer 3

• No restriction on type
• Value of it determines allocation of profits/loss

Question 4

LLP - partners status/liability

Answer 4

• Partners As shareholders
• No liability from LLP’s torts or contracts
• Liability from own torts or tort from directly supervised subordinate.

+

• As gral rule no entity can shield professional from own N or the one commited by subordinates

Question 5

LLP - Liaiblity Amount Limit

Answer 5

• Por rata to amount of shares owned

Question 6

LLP - Liability Exceptions

Answer 6

• Partner with malpractice insurance / bond/ bank letter of credit, other
• Some states set threshold amount for which professionals are personally liable when malpractice insurance doesnt have a defined amount

Question 7

LLP - Differences with LP (2)

Answer 7

• No distinction btwn gral/limited partner
• Partner’s liability: each one liable for own actions