An LLP requires a minimum of two people in order to register. Those who are considering starting an LLP should know. that registering an LLP can vary according to state regulations. They need to be aware of any local rules and laws.
Limited Liability Partnership (LLP) registration is designed to protect both parties in a limited liability partnership from personal liability for specific obligations. This means that should the company come into some sort of financial troubles such as a lawsuit or bankruptcy, one’s personal assets may not be taken. Limited partnerships offer entrepreneurs a bit more flexibility with their business structures than corporations do.
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It is possible to get LLP registration forms that are compliant in all states in the US. Otherwise, one must find the proper channels through which to file an application. For instance, in the state of California, one must submit a $70 United States dollars (USD) filing fee as well as a separate $15 USD service fee if dropping off the completed form. If the LLP has been previously formed in another state or country, one will also need a certificate of good standing from the previous agency. A company previously formed as a general partnership will need to file a certificate to converting the general partnership to an LLP.
When submitting a name for the company, it must be in one of several ways: Registered Limited Liability Partnership, Limited Liability Partnership, L.L.P., LLP, R.L.L.P. or RLLP. One also needs an agent to accept the service of process in the event of a lawsuit. This agent can be any adult within the state, but may not be another LLP. The certificate then needs to be filed with the secretary of state.
All business entities have their own processes for LLP registration. When one wants to seek LLP registration, he or she should consult with an attorney not only to make sure he or she is in compliance with state regulations but also to get the best terms possible to protect one’s assets. Remember LLP registration is meant to be beneficial to those who want equal say in the managing of their companies but less personal liability for debts.
It is important to know that not every business is eligible for LLP registration. New companies should be especially cautious when deciding on this registration and should seek legal advice to be sure they meet the requirements. Established businesses may need to shift the business structure to comply.