As your business grows it is wise to begin looking into forming some kind of Limited Liability Company (LLC) or a corporation in order to protect you and any partners you may have from the company and its liabilities. In most cases this can also work to protect the company from the personal problems of you and your partners. But which type of partnership is right for your business? We will look into two types of partnerships. One is an LLC and the other is a Limited Liability Partnership (LLP).
First let’s look at the main differences between the two. A Las Vegas LLP is restricted to certain kinds of licensed professionals. These include doctors, lawyers and accountants, though other licensed professions can also form an LLP. Another way to reference an LLP is as a Professional Limited Liability Partnership or PLLP.
By forming an LLP each partner is protected from the debts and liabilities owed by their partners. However, the protection offered by an LLP is often less comprehensive than that offered by an LLC. Typically an LLP is formed when state laws prohibit the partners from being able to form an LLC or a corporation.
Both forms of partnership are created by filling papers with the state and paying a filling fee. Both also require yearly registration fees.
Both partnerships don’t require extra tax filings as they are both use the pass through taxation method. Profits and losses will be recorded on the partners personal income tax forms.
Some key differences between the two are that an LLP is required to carry certain types of insurance and it is typically difficult to generate outside investment for the partnership with an LLP. Also, selling a piece of an LLP, or as a whole, can be difficult because of the partners involved.
When you are ready to begin the process of creating your own LLC or LLP in Las Vegas be sure to work with a Las Vegas LLC attorney that specializes in corporate law. You don’t want to go it alone when you are making some of the most important and far reaching decisions of your life. To get more detailed information on this topic please read our guide on maintaining your Nevada limited liability company.