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Limited 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.

Registration: Registration 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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