Limited liability limited partnership

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The limited liability limited partnership (LLLP) is a rather new form of business organization. Like a limited partnership, an LLLP consists of one or more general partners and one or more limited partners. The general partners get to manage the LLLP, while typically the limited partners only have a financial interest.

The difference between an LLLP and an LP is that the LLLP's general partners file with the state government to receive limited liability. Sometimes that filing is made in much the same way as partners of a limited liability partnership would. In those instances an LLLP is basically an LLP superimposed over an LP: the limited partners are only liable for their investment so long as they don't try to manage the firm, and the general partners are only liable to the extent provided by statute. In other states there is only one filing; the limited partnership elects in its certificate of limited partnership to be a LLLP. Most states require that a LLLP so identify itself in its name, but those requirements are not universal.

Because the LLLP is so new, its use is not widespread. Colorado, Delaware, Florida, Georgia, Maryland, Texas and Kentucky all allow for the formation of LLLPs, usually as a conversion of an existing LP (the general partners might want to do this to reduce their legal liability). LLLPs are most common in the real estate business, although other businesses can use the form as well, for example, CNN.

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