square6General partnership [GP].A GP has one or more general partners who is personally liable for partnership debts; a general partner can be bankrupted by a malpractice judgment brought against the partnership, even though the partner was not personally involved in the malpractice.square6Limited liability partnership [LLP].An LLP is similar to a general partnership, except that an LLP partner is not liable for any malpractice committed by the other LLP partners.square6Limited partnership [LP].An LP is comprised of at least one general partner and often Types of Partnershipsmany limited partners. Limited partners may not participate in the management of the LP, and their risks of loss are restricted to their equity investments in the LP. square6Limited liability company [“LLC”].An LLC is a state-registered association generally taxed as a partnership if it “checks the box.” LLC members, like corporate shareholders, are not personally liable. Unlike limited partners, LLC members may participate in management without risking personal liability. However, guaranteed payments are subject to self-employment tax, along with the members’ share of ordinary income or loss from the LLC.
Chapter 16, Exhibit 2a