Limited Liability Limited Partnerships
A limited liability limited partnership (LLLP) is a type of partnership that is very similar to a limited liability partnership (LP) in that it has two types of partners, general partners and limited partners. Unlike an LP, however, the general partners in an LLLP have some liability protection. The limited partners, however, still typically do not have any say in how the business is run.
LLLPs are a very new type of partnership and aren’t recognized in all states. They are currently only available in: Alabama, Arizona, Arkansas, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Kentucky, Maryland, Minnesota, Missouri, Montana, Nevada, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Dakota, Texas, Virginia, Washington, and Wyoming. California does not allow formation of an LLLP, but recognizes LLLPs formed in other states (for an annual registration fee).
Advantages of a Limited Liability Partnership
Protection for general partners. The main advantage of an LLLP is that all partners are protected by some form of liability protection, but limited partners still have typically have no say in how the business is run.
Disadvantages of a Limited Liability Partnership
Compared to corporations and LLCs. Despite offering liability protection for all members, business structures such as corporations and limited liability companies still offer more comprehensive protection.
Also, not all states recognize this type of partnership, unlike corporations or LLCs, which could make doing business across state lines difficult.