Partnerships

General Partnership (GP) 

  • A California GP must have two or more persons engaged in a business for profit. Such a partnership can arise simply by the actions of two people. But it is highly advisable to establish a partnership agreement upfront of a joint business venture to provide a framework for the continues success of the business. 

 

Limited Partnership (LP) 

  • A California LP may provide limited liability for some partners. There must be at least one general partner that acts as the controlling partner and one limited partner whose liability is normally limited to the amount of control or participation of the limited partner. General partners of an LP have unlimited personal liability for the LP’s debts and obligation.

 

Limited Liability Partnership (LLP) 

  • An LLP is a partnership that engages in the practice of public accountancy, the practice of architecture, the practice of engineering or the practice of land surveying or provides services or facilities to a California registered LLP that practices public accountancy or law, or to a foreign LLP. An LLP is required to maintain certain levels of insurance as required by law.