What is a Limited Liability Partnership (LLP)?
A Limited Liability Partnership (LLP) is a hybrid business entity that combines features of a partnership (operational flexibility, pass-through taxation) with limited-liability protection typically associated with corporations. Each partner is protected from personal liability for the negligent acts of other partners or employees — but generally remains liable for their own professional malpractice. LLPs are most commonly used by professional-service firms: law firms, accounting firms, consultancies.
Key features
- Limited liability: each partner shielded from the firm’s debts and other partners’ professional malpractice.
- Pass-through taxation: profits and losses flow to partners’ personal returns; no entity-level tax.
- Partnership governance: internal management structure flexible, governed by the partnership agreement.
- Public registration: formal filing with the state/jurisdiction required.
LLP vs. related structures
- LLP vs. General Partnership: general partners have unlimited personal liability; LLP partners have limited liability.
- LLP vs. LLC: LLC has more flexible structure; LLP is typically restricted to professional services in many U.S. states.
- LLP vs. C corporation: LLP avoids double taxation but is generally unsuitable for raising venture capital.
Türkiye’de LLP karşılığı
Türk hukukunda LLP’nin doğrudan karşılığı yoktur. En yakın yapı, TTK kapsamındaki kollektif şirket veya komandit şirkettir ancak bu yapılarda ortakların kişisel sorumluluğu sınırlı değildir. Türk hukuk büroları için TBB (Türkiye Barolar Birliği) avukatlık ortaklığı modelini düzenler; ancak bu yapı LLP’den daha kısıtlıdır ve sınırlı sorumluluk koruması Anglo-Amerikan LLP’lerinkiyle aynı değildir.
Do: use LLP for professional-service partnerships where personal-malpractice liability protection matters; check state-specific eligibility rules.
Don’t: use LLP if you plan to raise venture capital — LLP is not a typical VC-compatible structure.