The major features of an LLP are that it limits the personal liability of the partners and
A)it allows the partnership to continue as a pass-through tax entity.
B)LLP statutes do not vary from state to state.
C)it can only do business in the state in which it was formed.
D)only a few states have enacted LLP statutes.

Question

Quizplus · Accepted Answer

An LLP (Limited Liability Partnership) limits the personal liability of the partners and allows the partnership to continue as a pass-through tax entity, meaning the partnership itself is not taxed on its income. Instead, the income is passed through to the partners who report it on their personal tax returns. This is a key feature of LLPs. The other options are incorrect because LLP statutes do vary from state to state, LLPs can do business in multiple states, and many states have enacted LLP statutes.

The Major Features of an LLP Are That It Limits