The oft-forgotten partnership option is the limited-liability limited partnership (“LLLP”). For those well-versed in business formation, this is a shocking reality because LLLPs are a truly unique entity that can fuse many of the best benefits of choosing a partnership with a key positive aspect of other entities – limited liability.

What makes an LLLP so special? First, you retain the flexibility and inherent equality that partnerships have in their natural state. Second, the entity insulates the partners from personal liability for financial and legal liabilities of the business. Finally, the ability to include limited partners can encourage passive investors to contribute to your business success.

Given all the advantages, what is the key drawback? As with any partnership, circumstances beyond your control can terminate the business. If a general partner passes away in a freak accident – the business as it existed before is over – the remaining partners will have to create a new partnership to carry on, often losing valuable branding and goodwill. Additionally, when disagreements arise, transfer of ownership to an outsider is not an option so gridlock can cause the partnership to dissolve.

At Garrett, Walker & Aycoth, we can help you make the crucial decision of whether an LLLP is right for you. What’s more, we have the knowledge and skill required to help you plan as much as possible for any and all contingencies, so that the most common pitfalls in an LLLP won’t completely derail all your hard work. Call us today at (336) 379-0539 or contact us to schedule an in-depth consultation.