A Limited Liability Partnership (LLP) shares many features with a traditional partnership, where two or more parties agree to work together for mutual benefit.
A key difference between these forms of partnership is that an LLP offers reduced personal responsibility for any business debts or liabilities. The LLP is primarily responsible for any liabilities, not the individual partners, because it is a separate legal entity to its partners.
A clear, unambiguous partnership agreement is fundamental to the smooth running of any partnership.
Partnership contracts provide business continuity in the event of a dispute. They also outline responsibilities, decision-making criteria, capital contributions, distribution of monies, and salaries.