What is the difference between an LLP and an LLC?

Question

What is the difference between an LLP and an LLC?

Answer 1

Funny thing. I just had the same question today while looking at a employment lawyer invoice. It had the names of the Attornies and ended with LLP. It means a limited liability partnership. Here is what I found:

Unlike a general partnership, in which individual partners are liable for the partnership's debts and obligations, an LLP provides each of its individual partners protection against personal liability for certain partnership liabilities.

Answer 2

Yep, a limited liability partnership provides some protection for partners. An LLC is a limited liability corporation and consists of "members" instead of partners but also provides liability protection.

Both are so-called "pass-through" entities for taxation purposes, meaning that the entity itself (LLP or LLC) is not taxed a corporate tax rate but the income is distributed to the partners/members and taxed to them individually.