Today, we are continuing with our series on types of home business. Today’s topic is the limited liability partnership (LLP).
Taxgirl points out in a Problogger article that the limited liability partnership is similar to the general partnership: it’s simple and it is a "pass through" entity for tax purposes. However, you can register your LLP with your state, and this brings with is some protection, according to the article:
The benefit of registration is that each partner is not liable for
obligations and liabilities arising from the “negligence, omissions,
malpractice, wrongful acts or misconduct” of the other partners. In
other words, so long as you observe the proper rules, liability is
largely limited to your own actions.
Consult with a tax attorney or an accountant before making a decision about which type of home business is best for you.