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LSDefine

Simple English definitions for legal terms

LLP

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A quick definition of LLP:

A limited liability partnership (LLP) is a type of partnership where each partner is only responsible for a limited amount of the partnership's debts. This means that if the partnership owes money, the partners will not have to pay more than their share. LLPs are often used by professionals and larger partnerships. They must have at least two partners, and each partner can have different levels of control and profits. However, if the partners do something wrong, like not paying their debts, a court may make them pay more than their share.

A more thorough explanation:

Definition: Limited liability partnership (LLP) is a type of partnership where each partner has limited personal liability for the debts of the partnership. This means that partners are not responsible for the tortious damages of other partners, but they may be responsible for contractual debts depending on the state. LLPs are popular for larger partnerships, especially for professionals, and some states only allow professionals to use the LLP format.

For example, a group of lawyers may form an LLP to protect themselves from personal liability for the debts of the partnership. If the partnership is sued for malpractice, each lawyer's personal assets are protected from being seized to pay the damages.

LLPs must have at least two partners, but they have flexibility in structuring how control and profits are divided among partners. Most decisions in an LLP can be allocated to certain partners, except for changes to the partnership agreement, which require approval from all partners.

Unlike limited partnerships, LLPs allow partners to have limited liability even if they are involved in managing the business. However, if a court finds that partners attempted to undermine creditors by making improper distributions, the court may "pierce the veil" of limited liability and require partners to pay back funds to creditors. This decision depends on the specific laws of the state where the LLP is registered.

Example: A group of doctors may form an LLP to protect themselves from personal liability for the debts of the partnership. If the partnership is sued for medical malpractice, each doctor's personal assets are protected from being seized to pay the damages.

This example illustrates the definition of LLP by showing how professionals can use this type of partnership to protect themselves from personal liability for the debts of the partnership. The doctors can work together as a partnership, but they are not personally responsible for each other's mistakes or debts.

Compare with: Limited partnership and limited liability company (LLC).

LLC | loan

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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