Limited Liability Partnership Disputes: What Do Partners Need To Know?

A limited liability partnership (LLP) is a business structure in which aspects of partnerships and corporations are combined.

This flexible characteristic makes LLPs an attractive option for business owners and professionals since LLP members are not personally liable for the partnership's debts. This makes them particularly appealing among professional services firms such as law firms, accountants, and architects.

As is common in any business arrangement, disputes may arise between the partners of an LLP. These disputes can be inevitable, ranging from disagreements over management to breaches of the LLP agreement.

What is an LLP?

An LLP is a separate legal body that can enter contracts, own property, and be sued in its own name. In contrast to corporate shareholders, the partners have the power to manage the business directly.