Formation of a Limited Liability Partnership

A limited liability partnership (LLP) is a type of business entity where the owners have limited liability protection, similar to a corporation, but with the tax advantages and flexibility of a partnership. Here are the steps to form an LLP:

1. Choose a Name: The LLP must have a unique name that is not already in use in the state where it will be registered. The name should also include the words "limited liability partnership" or the abbreviation "LLP."

2. File Articles of Partnership: The LLP must file articles of partnership with the secretary of state of the state in which it is organized. These articles typically include:

- The name and address of the LLP
- The name and address of each partner
- The term of the LLP (if not perpetual)
- The purpose of the LLP
- The amount of capital contributions from each partner
- The rights and duties of each partner
- The method of allocating profits and losses
- The process for admitting or withdrawing partners
- The name and address of the LLP's registered agent

3. Obtain Permits and Licenses: Depending on the nature of the LLP's business, it may need to obtain permits and licenses from state and local government agencies.

4. Draft a Partnership Agreement: While not required by law, it is recommended that the LLP draft a partnership agreement that outlines the rights and responsibilities of each partner, as well as the procedures for resolving disputes and dissolving the partnership.

5. Register for Taxes: The LLP must register for federal, state, and local taxes, and obtain any necessary tax identification numbers.

6. Open a Bank Account: The LLP should open a separate bank account for the business to keep its finances separate from the personal finances of the partners.

Overall, forming an LLP involves filing articles of partnership with the state, obtaining necessary permits and licenses, drafting a partnership agreement, registering for taxes, and opening a bank account.