- Legal vs tax
- State-law LLP. Federal tax is typically partnership.
- Liability
- Often shields partners from other partners' malpractice; contract and supervisory liability still exist.
- Default federal tax
- partnership
- Other federal options
- —
- Formation / maintenance
- State LLP registration; many states limit LLPs to licensed professions.
- Public-record notes
- Registration is public. Partner directories may be public or professional-board public.
- Succession
- Partnership agreement plus professional-licensing succession rules.
- Investor fit
- Usually partner-owned professional practices, not venture equity.
Disqualifiers
- Non-professional operating company in a state that restricts LLP use
Professional review: attorney, cpa.
Related: professional-llcprofessional-corporationgeneral-partnership