Partnerships that are formalised and legally bound into an entity are called Limited Liability Partnerships or LLP’s. You probably have come across quite a few of them, they usually take on the form X, Y & Sons or A & B Limited. Each partner will only be liable to the amount he or she contributes to the LLP and are also protected from each other’s legal problems.
For example…
Did you know that that the “Big Four” accounting firms in the US: KPMG, Deloitte, Ernst & Young and Pricewaterhousecoopers are LLPs? There is a reason why these firms and partnerships between professionals require a license such as doctors, attorneys and financial advisers form LLPs, so that they are protected in the event that their partners get sued.
