Anyone know anything about Limited Liability Partnerships?

[Icarium]

Hi. My parents are thinking about forming one with me to simplify things for when we buy a place and for the purpose of money xfer and stuff.

I've done some preliminary Googling and so far have turned up 2 sites with the list of forms we need to fill out that are different and have different fees...

http://www.maine.gov/sos/cec/corp/formsnew/llpforms.htm
http://www.cyberdriveillinois.com/de...forms/llp.html

Etc. We live in California/US residents... can any one shed some light on which list is right (Or perhaps neither is) or perhaps why maybe this is a bad idea.

Thanks ;p

 

[1911]

best to talk with an attorney. you probably will need one anyway to set it up. dont go cheap..good advice is worth its weight in gold....for me a family limited partership and real estate trust fit my needs.

 

[Icarium]

Alright, if anyone knows of a good one in the Bay Area that works in that field lemme know

 

[Uncle Erik]

You'll want to start here:

http://www.ss.ca.gov/business/llp/llp.htm

The links you posted are for Maine and Illinois; the laws are different here in California. As the page says, a California LLP is only available to attorneys, accountants and architects.

However, there should be a business entity that will suit your needs. If you don't have an attorney, talk to your accountant. They are familiar with these, as well, and can give excellent advice on what will be best. They will know attorneys to set one up, too.

Take a look around the business portal there; you'll get some ideas.

 

[Zorander]

Is limited-liability partnership where one simply contributes capital to the partnership and not be unlimited in liability (which applies to general partners)?

 

[F107plus5]

This is a bit off topic, but I discovered an LLP while looking at a jug of Motts Apple Juice yesterday.

They're an LLP based in the US using concentrated apple juice sourced from the US, South Africa and China.

....I guess the US is suffering an erratic "apple juice shortage".

Back to our regularly scheduled topic.

 

[RYCeT]

Icarium, as uncle eric said, the law in each state is different. You'll definitely need a good attorney for this stuff. I've been doing research for this kind of stuff as well (for different purpose though). According to my understanding, you'll probably want to check out LLC. They can be set up to be similar as LLP. Ask the attorney how to do it.

 

[Icarium]

LLC is a limited liability corporation? Hrm souds good.

 

[Davesrose]

Unless you're going to be selling goods, I'm not sure becoming a limited liability has many advantages if you have trustworthy parents as business partners. It can be quite expensive. Wikipedia seemed to come up with a good list of pros and cons:

*EDIT* Darnnit....I read LLC at the bottom and it stuck!!!!

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

Anyway, LLPs have similar pros and cons too....and varies state by state. I know many lawyers and art firms are LLP:

http://en.wikipedia.org/wiki/Limited...#United_States

Professionals like LLPs because it gives them less liability from rendering services with a client who can sue them (AFAIK).

Since I looked up what it would cost to be a corporation vs sole proprietor for my freelance business, I actually saw that there was less tax/fees in my income bracket as a sole proprietor. Best to look up all the types of corporations/ partnerships to figure out which one is best for you.

 

[Icarium]

Thanks pretty much determined we need a lawyer. That may be the end of that idea ;p