Limited Liability Partnership

A Limited Liability Partnership (LLP) is a business structure where two or more people run a company together, and each member’s personal financial risk is limited to the money they invest in the business. It combines the flexibility of a partnership with the limited liability of a company.

Let’s say you and your friend want to start an architecture firm together and decide to form a Limited Liability Partnership (LLP). In this setup, you both share responsibility for running the business, but your personal savings are generally protected if the firm owes money or faces legal claims. You are only at risk for the money you invested. Any profits the business makes are shared between you according to your agreement, allowing you to work together flexibly while limiting your personal financial risk.