LLP Lawyers Can Help You Form a Limited Liability Partnership LLPs are a legal structure in which partners share limited liability and pay taxes together. Unlike a corporation, however, an LLP does not have shareholders. In addition, an LLP does not pay corporate tax - its profits are taxed to the individual partners. In some states, the state franchise tax applies to an LLP, despite the lack of shareholder liability. Regardless of the type of LLP, its partners should seek legal advice from an LLP lawyer if they have questions about LLP formation or LLP taxation. A LLP must also have insurance in order to be compliant. This insurance is important for the protection of the partners' personal assets. In some specialties, insurance premiums can exceed one hundred thousand dollars. In Massachusetts, LLPs are required to carry certain minimum liability insurance levels to avoid potential personal liability. LLP Lawyers Can Help You Form a Limited Liability Partnership Another advantage of an LLP is that members do not have personal liability for the actions or debts of the business. This means that if the business fails, members only lose their monetary investments. In some cases, however, the owners of LLCs can be held personally liable for the actions of their partners. In addition, an LLP is unique in that a partner is only liable for his or her own negligence and not the negligence of another partner. While an LLP is not a legal entity in and of itself, it can be a great option for business owners who want to start a limited liability partnership. An attorney can help guide you through the process and draft the partnership agreement, which will govern business decisions and disputes. An attorney can also make sure that you comply with any insurance requirements and keep your personal assets secure. LLP Lawyers Can Help You Form a Limited Liability Partnership The cost of forming an LLP can vary depending on your plans and the state you're in. However, Priori LLP lawyers offer flat fees that start at six hundred dollars, which includes a free consultation. You should contact several firms and compare costs before making a decision. You may be surprised at how affordable and flexible it can be! Besides the legalities and paperwork, an LLP also requires annual reporting. This document must state the name of the LLP, the number of partners, and the registered office address. It should also outline the terms of the partnership, including who is responsible for profits and losses. Furthermore, it should stipulate how the partnership can be dissolved if one or more partners are no longer interested. LLP Lawyers Can Help You Form a Limited Liability Partnership In order to avoid pitfalls when hiring an LLP, it is best to seek legal advice from a reputable company that has the right credentials and experience. This way, you can rest assured that your case will be handled by a professional who has the skill and experience needed to win your case.