Liability Partnership (LLP)
LLP in general:
California allows attorneys and accountants to operate their practices
as a limited liability partnership. This formation is a General Partnership
that elects to be treated as an LLP by registering with the Secretary of
State. Many attorneys and accountants find the LLP as a very attractive
alternative since it shields the partners from vicarious liability, can
operate more informally and flexibly than a corporation, and is accorded
full partnership tax treatment. Note, in California, with certain
exceptions, the LLP is only available to attorneys and accountants.
in California, for example, is effected by filing a written statement with
the Secretary of State (along with a filing fee) setting forth the name
and principal office address, name and address of its agent for service
of process in California, a brief statement of the partnership’s business,
and a statement that the partnership is registering as a limited libaility
partnership. An annual tax is thereafter imposed on LLPs equivalent to
the minimum franchise tax imposed on California corporations (i.e. $800).
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