Question

Comparing the LLC, LP, and LLP, give a reason (or scenario) why you would choose each of the three forms over the other two.

Answer 1

  Answer

Difference Between LP, LLP, LLLP:
LP is restricted partnership, wherever a General Partner assumes some liability (and participates in management), whereas a restricted Partner has indebtedness and can't participate in management. So there are two types of partners exists here: General Partners & Limited Partners.
LLP is restricted liability partnership, wherever partners aren't control to blame for the acts of alternative partners. So here all partners are treat as Limited Partners. Such type of partnerships firms are formed in professional organizations, like accounting firms or a group of doctors or Lawyers who want to practice together. In LLP all partners assume management role in the company.

LLLP is limited liability limited partnership. This type of form has General and Limited partners. It's like associate degree phonograph record, but General partners also have limited liability. These are extremely rare and many states don't allow them. Only ten states have allowed these types of business. Usually LLLPs are created by real estate businesses. In LLLP management roles square measure assumed by one or a number of partners referred to as the "general partners", and the other partners are known as the "limited partners".

Why would one elect to settle on one over the other?
We can answer this by defining each one’s characteristics

Limited Partnership:
In a restricted partnership (LP), a minimum of one partner has unlimited liability—the general partner(s). The other partners (limited partners) have liability, that means their personal assets generally can not be wont to satisfy business debts and liabilities.
The general partners oversee the day-to-day operations of the LP. Limited partners are basically silent investors
Limited Liability Partnership :
The personal assets of the partners in associate degree LLP generally can not be wont to satisfy business debts and liabilities. The LLP doesn't defend the partners for liability for his or her personal acts. Meaning the LLP cannot limit the liability of owners for their own malpractice.