The Full Form of LLPIN is Limited Liability Partnership Identification Number.

A Limited Liability Partnership (LLP) is essentially a combination of General Partnerships (GPs) and Limited Partnership (LPs).

Like a General Partnership, Limited Liability Partnerships allow partners to manage the business.  Limited Partners in an LP cannot take on management responsibility. The LLP allows partners to enjoy the liability protection and tax benefits of a Limited Partnership.

LLPs are particularly beneficial to firms engaged in the legal, medical, accounting, engineering or architectural professions. A partner in an LLP is personally liable for his or her own debts and obligations resulting from negligence, malpractice or misconduct. However, the partner is not liable for any debts incurred or acts performed by other partners.

Like Limited Partnerships, LLPs also avoid “double taxation.” Profits are not taxed at the partnership level and instead are “passed through” and reported on the partner’s personal tax return (Form 1040).

Limited Liability Partnerships are regulated at the state level, and as such, the process to LLP formation varies. There are, however, basic steps that all states require to form a Limited Liability Partnership. Follow along as we guide you through these steps.