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LLP (Limited Liability Partnership)

The limited liability partnership (LLP) is a common form of business organization in the United States and many other countries. Partnerships are business organizations within which two or more persons (called “partners”) co-own a business for profit. Whereas in common law general partnerships, the personal assets of the partners are subject to the liabilities of the partnership, LLPs provide the partners with limited liability, generally making only the LLP’s assets at risk for the liabilities of the partnership. This entry addresses the history, governance, and liabilities of LLPs.

History

The origins of general partnership law are found in Roman law and the law of merchants, the predecessors to the common law general partnership. The Roman rendition of the partnership, the societas, bore many similarities to present-day common ...

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