What is an LLP?

LLP stands for Limited Liability Partnership, which is a type of business structure that combines elements of both partnerships and corporations. In an LLP, each partner has limited liability, meaning they are not personally responsible for the debts of the business beyond their investment. LLPs are often used by professional services firms, such as law, accounting, or consulting firms. This structure allows partners to manage the business directly while protecting their personal assets. LLPs must follow specific legal requirements depending on the country or state in which they are formed.