Glossary • Updated 2026
LP vs LLP
Limited Partnership (passive investors + general partner liability) vs Limited Liability Partnership (professional firms, all-partner shield).
In detail
Delaware LPs pay the $400 HB 400 annual tax like LLCs.
LLPs suit licensed professionals; formation and insurance rules vary by state.
Neither is VC-fundable: convert to a C-corp before raising.
Where it matters
More definitions
Sources
- Cal. Rev. & Tax Code; 8 Del. C.; Wyo. Stat. Title 17; FTB/SOS glossaries