Limited Liability Partnership Establishment in Los Angeles
Some types of businesses in Los Angeles would require limited liability partnership establishment for their advantage. A limited liability partnership has the characteristics of corporations and partnerships, and is generally favored for small businesses because of the advantages it offers.
As it is, small businesses in Los Angeles like law firms, accounting firms, and the like would usually employ a limited liability partnership since the liability of one partner would not be the liability of another, as usually agreed on the partnership agreement. With this setup, malpractice claims are therefore limited. However, any other form of liability by the other partner can be passed on to all other partners, such as debts and obligations.
Partners can also agree on how all their profits will be divided among them, and will pay their tax accordingly, therefore avoiding double taxation. They would submit their own report according to their own earnings, and not of the whole partnership. Partners who want to take active roles in managing the business can also seek for a limited liability partnership establishment.
A limited liability partnership establishment would require registration with the California Secretary of State. In some cases, if you have a previously existing partnership and your business would require such conversion, you must re-file your registration, too.
As each state has its own set of rules and regulations about limited liability partnership establishment, a good advice here would be to seek legal consultation from a business lawyer who can guide you in deciding if a limited liability partnership would benefit all partners mutually.
Business Corporate Attorney is a business law firm based in Los Angeles that has been helping companies and partnerships establish their businesses for more than 15 years. Our business lawyers have been indispensable guides in business decision-making for our clients who have been successful in their fields. We also have a good understanding of drafting articles of incorporation for limited liability corporations and registering business formations according to state and federal laws.
If you need assistance in drafting your limited liability partnership agreement, call our office today at (888) 833-2528 or email us at firstname.lastname@example.org for free case evaluation. Our friendly and knowledgeable paralegal staff will be ready to walk you throughout the initial process and connect you to one of our business lawyers when needed.