The limited liability limited partnership (LLLP) is a comparatively new offshoot or variant of the limited partnership.
Like a limited partnership, LLLP consists of one of more general partners and one or more limited partners.
The general partners manage the business operations of the LLLP, while the limited partners are only financial sponsors sharing profits.
In ordinary limited partnership the general partners are jointly and severally liable for the unpaid debts of this firm and their personal liability on this score is unlimited. In contrast, the distinguishing feature of Limited Liability Limited Partnership( LLLP) is that all partners including the general partners also enjoy limited personal liability on the unpaid debts of the firm, which maximum can go up to their individual capital contribution and not beyond in any case.
Where any limited partnership make an election for its conversion into limited liability limited partnership status (LLLP) under state law, the general partners of the firm also along with the limited partners have only limited liability for the debts of the business that is contracted as long as such election is in force. Given the risk profile, this type of election may be a very affordable liability protection measure.
Most states or jurisdictions mandate that an LLLP identify itself in its name, so that outsiders, dealing with the business or its partners, are aware of the protection from liability that the partners of LLLP enjoy.
