In law, a limited liability partnership, or LLP, stands for a partnership in which members have protection from personal liability with the exception of the total investment in their LLP. This general partnership offers two classes of partners, including the general partners and the limited partners.
Most general partners in an LLP are individuals or corporations. A relatively common limited partnership situation may involve a silent partner. In this instance, one or more of the limited partners offers financial backing while the general partners are in charge of running the business. Often, partners within a limited liability partnership are not responsible for other partners' debts or obligations along with liabilities stemming from misconduct, negligence or malpractice.