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Definition

Limited liability partnership (LLP)

Limited liability partnership refers to a partnership of professionals in which partners are given limited liability and the public is protected from malpractice by insurance carried by the partnership.

Most states allow professionals such as lawyers, doctors, and accountants to form a limited liability partnership or “LLP”. The LLP is designed to protect innocent partners from malpractice or negligence claims resulting form the acts of another partner. LLPs generally carry large insurance policies as protection against malpractice suits. These professionals partnerships vary in size form a medical partnership of three to five doctors, to 150 to 200 partners in a large law firm to more than 2000 partners in an international accounting firm.

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