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Like a Limited Partnership (LP), a Limited Liability Limited Partnership (LLLP) consists of at least one general partner and at least one limited partner. The general partners manage the everyday operations of the business and the limited partners have more of a financial interest.
General Partners in LLLPs
Unlike a general partner in a LP, general partners in an LLLP are afforded limited liability for the debts and obligations of the limited partnership. This means that he or she is not personally liable for these debts.
Requirements Vary by State
LLLPs are regulated by the state, and not every state yet allows this legal formation. For those that do, regulations are not universal. Some states allow partnerships to elect LLLP status initially while others require conversion from LP status.
Your state of operation has a significant impact on how the LLLP comes into being and operates, so be sure to check with your state’s department of revenue.
