Business Partnerships: What's the Difference?

The most common types of partnerships are general partnerships, limited partnerships (LPs), limited liability partnerships (LLPs), and limited liability limited partnerships (LLLPs).

Unlike the other types of partnerships, a general partnership is not filed with the Secretary of State and does not offer any limited liability protections for any of the owners. An LP is form of partnership that has both a general partner and a limited partner. A general partner has the power to make business decisions, whereas a limited partner typically just has rights to partnership income.

When it comes to limited liability protections, an LP does not offer any limited liability protections for its general partner(s) but does offer limited liability protections for its limited partner(s). An LLP is a form of partnership that typically has only limited partners. Each limited partnership gets liability protection. A LLLP is form of partnership that has both a general partner and a limited partner.

When it comes to limited liability protections, a LLLP offers limited liability protections for both its general partner(s) and limited partner(s). When forming a partnership, it is important to know these differences in determining which type of partnership is right for your business.

If you have questions on what is the best partnership structure for your business, give one of our attorneys a call today at (605) 275-5665.