-1

What does LLP stand for? As in the example name "Flood Law Group, LLP".

Improve this question
1
  • 2
    Limited Liability Partnership
    – Dilip Sarwate
    Commented May 24, 2012 at 13:37

1 Answer 1

Reset to default
6

It means Limited liability partnership.

Limited liability means that the liabilities of the company (debts) can't be transferred to the partner(s) who has/have limited liability of the company.

If the company can't repay its debts, the partner(s) with limited liability can inject capital in the company, but do not have any obligations to do so.

You can find more information in the Wikipedia article at:

http://en.wikipedia.org/wiki/Limited_liability_partnership

Improve this answer
1
  • This is all true and correct, just wanted to add that an LLP does not provide partners a total shield from liability; in most other forms of limited-liability business entities, a person working in the course and scope of business of that entity is treated as an "agent" of the entity and is shielded from personal liability. An LLP, however, removes the "agency" relationship; a partner sued for fraud, misfeasance, negligence, malpractice etc is personally liable for any damages and cannot hide behind the partnership's shield. Only creditor debts and liability for others' actions is limited.
    – KeithS
    Commented May 30, 2012 at 16:04

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .