When can I use a Limited Liability Partnership?

A Limited Liability Partnership or LLP can be used by most businesses but is commonly used if you are an accountant, architects or lawyer as these types of businesses were not allowed to form Corporations due to the fact that the shareholders have a say in the business which is not ideal in professions that need to be personally licensed. A LLP remains within the control of partners and they are responsible for every aspect of the business.

Also if you want to limit your losses of your business to just your investments you can use an LLP, in the past certain professionals were personally liable for any losses of the business and there was no way of shielding themselves from creditors, when the Uniform Partnership Act came into force it was welcomed by businesses that wanted to protect their personal belongings from the what happened in their business and limit what they lost to their investments.

You need to look to your individual state legislation as to whether your business can be set up as a Limited Liability Partnership, as most some states only allow professional, for example accountants and lawyers/attorneys, to become a Limited Liability Partnership.