[Anonymous]

All right, CPAexcel and the topic itself are confusing the crap out of me regarding the characteristics of Limited Partnerships, Limited Liability Partnerships, and Limited Liability Limited Partnerships (my Taxation of Business Entities textbook didn’t really help either). What are just the key traits or distinctions of those three entities?

[iampei]

ummm, i've never heard of the last one…do you mean LLC?

[Anonymous]

A quick google search revealed this…

https://www.ftb.ca.gov/businesses/bus_structures/LLLpartner.shtml

[Anonymous]

LP is limited partnership, where a General Partner assumes some liability (and participates in management), whereas a Limited Partner has limited liability and cannot participate in management.

LLP is limited liability partnership, where partners are not held liable for the acts of other partners. These are common for professional organizations, like accounting firms.

LLLP is limited liability limited partnership. These are extremely rare and many states don't allow them. This form also has General and Limited partners. It's like an LP, but General partners also have limited liability. Only 10 states have allowed these forms of business.

Just took Business Law… hope that helps!

[Anonymous]

@bronxbombers2 Oh my gosh that is so helpful, thanks 🙂

[Anonymous]

Haha no problem, glad to help 🙂

Btw, in terms of LP's, there MUST be at least one General and at least one Limited partner for the form of business to exist.

[Author]

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