- Limited Liability: Yes
- Taxation: One Level
- Ownership: More Than One
- Typical Complexity / Cost: High
- Capital Structure: Flexible
- Ability to Take Public: Very Limited
- Employee Compensation Methods: Complex
In many respects, a limited liability partnership (commonly referred to as an LLP) and LLC are very similar. They are typically taxed in the same manner, involve roughly the same complexity and cost to organize, and provide similar limitations on liability to their owners (in part due to recent legislative changes). However, Texas LLPs have some unique requirements which set them apart from other Texas entity types, including an annual fee of $200 assessed to each limited partner. Additionally, until recent legislative changes, LLPs were previously required to maintain liability insurance coverage of at least $100,000. In Texas and elsewhere, state statutes authorizing LLPs predate those relating to LLCs, and while LLPs used to enjoy more popularity, their use is now primarily limited to organizations rendering certain professional services.