Setting up a limited liability partnership (also known as an LLP) offers many advantages and a few disadvantages as well. Before you make a final decision, carefully weigh the pros and cons of this unique business arrangement. Keep in mind that a partnership joins two or more people together in a business relationship. Each partner in the business holds some liability for the debts of the business and also for its profits. Every partnership should be governed by a written agreement drawn up by an attorney so that all partnership members are protected in the event of an unforeseen circumstance.
Some of the primary advantages of an LLC partnership in Nevada are that new ideas are routinely shared among members of the LLP. The sharing of ideas likely will increase the company’s earning potential and make it more successful and profitable in the long run. Another advantage is that the initial capital investment will likely be higher because more people are available to invest their money. Finally, an LLP removes a portion of each partner’s personal liability, making it much different and more appealing than sole proprietorships and other types of partnerships.
Of course, there are also disadvantages of a limited liability partnership arrangement. New business strategies may be more difficult to implement if there is more than one person on the partnership team. And, it is possible that diverse opinions may surface, causing dissent amount LLP partners. Another disadvantage is that sometimes partners let their friendship with other partners get in the way of successfully getting the job done. Finally, it can be the end of the partnership if one of the partners leaves the business. This can be avoided, however, by making sure that a legal partnership agreement is drawn up when the LLP is formed.
Forming an LLC in Delaware partnership is a relatively easy process. You will need to file some specific legal documents that can be obtained from your state’s business office. You will also need to meet any mandates set by the state such as insurance and licensing requirements. You will need to supply the name of your partnership on the legal forms that you submit to the state. The name of your partnership must include the words “limited liability partnership” or LLP. Once you have completed the form, submit it to your state business office along with any required registration fees. Your partnership will be in effect once you have received notification and acknowledgment by the state.
