Question

Please explain what types of professional companies are organized as LLPs and why?

Answer 1

Types of professional companies organised as limited liability partnerships are legal service companies,consulting companies, accounting companies and architect companies.

The maine factor why the professional companies form LLP'S is the flexibility offered by it which makes it a superior option to an LLC or other corporate entitiy. Another benefit is the ability to bring partners in and let partners out. The other major reason is due to partnership structure that us inherent to accounting and other professional services firm - LLP provides prptection against the actions or debts of other partners by isolating each partner in the case of any claim.