LLP: The essentials
The limited liability partnership (LLP) is a business structure that is typically reserved for professional service companies that require certain state licenses to operate. A few examples of companies that can typically incorporate as an LLP are medical practices, law firms, dentist’s offices, and architectural firms. LLPs offer a form of limited liability protection, which prevents the personal assets of each individual owner from being seized due to the actions of the company’s other partners.
Pros and cons
LLPs enjoy personal asset protection, as well as freedom from many of the regulatory requirements placed on more formal structures. In exchange for this protection, LLPs are typically required to have insurance policies that cover any personal liability issues that may arise due to the often-sensitive nature of their services. LLPs are still required to follow standard procedures in regards to staying compliant.
Tax implications
An LLP is taxed on its owners’ personal income tax returns. Owners of an LLP are considered self-employed, and are responsible for understanding their self-employment tax obligations.
Quick process overview
The first step in forming an LLP is to file all necessary registration documents with the state in which you are looking to establish your business. Then you will be required to pay all necessary fees.
Continuing requirements
Once the initial formation process has been completed, it is recommended (but not mandatory) that you take the time to develop a formal set of documents that will explicitly outline the ownership and management structure of the business, as well as establish your initial bank accounts.
Other notes
The LLP is not a recognized business structure in several states. Also, it is typically only an option for professional service companies such as: medical offices, accounting or architectural firms, and legal practices.
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Frequently Asked Questions
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You can form a corporation or LLC with our help for as little as $0, plus state filing fees for incorporation. Filing fees vary depending on the state you incorporate in. For more information on specific states, check out our state guides on the Swyft Resource Center. You can also email us with specific questions or contact us at 877-777-0450.
Swyft Filings accepts payment through Visa, MasterCard, American Express, PayPal, checks, and money orders. You can send any questions about payment to our email address or contact us at 877-777-0450.
It depends on what you ordered. If all you did was file your corporation or LLC, the price you paid when ordering is all you pay. You will have no further fees after that.
However, if you signed up for the Swyft Filings Registered Agent Service, you will be charged its initial fee three days after you place your order. From then on, you will be charged according to the terms of your subscription until you change your registered agent with the state or dissolve your company. If you change your agent or dissolve your company on your own, let us know so we can discontinue billing.
Other potential subscription-based options include SnapMailbox, 360 Legal Forms, and ComplianceGuard. If you opt for SnapMailbox or 360 Legal Forms, you will be charged a monthly fee after their respective 30-day free trials end. ComplianceGuard has an annual fee after a 14-day free trial. All three of these services are completely optional.
Our team processes all Standard orders on a first come, first served basis. If you opt for Express or Same-Day Processing, we prioritize your order and send it to the front of the line. However, no matter how fast we get it out the door, you’ll still have to wait for your state to address your filing.
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