Limited Liability Partnership

Limited Liability Partnerships are formed by filing an application for registration with the secretary of state. Limited Liability Partnerships can provide limited tort liability for all partners, allowing partners to actively participate in management without losing limited liability. Professionals should keep in mind that state regulations may prevent any limited liability for malpractice.

In most states, a Limited Liability Partnership will shield partners against liability for the malpractice of other partners; however, this is not the case in every state. In Illinois, a Limited Liability Partnership will not protect partners in a law firm from liability for the malpractice of other partners. Tax treatment of a Limited Liability Partnership is the same as for a General Partnership.