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Advantages and Disadvantages of Limited Liabitlity

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A limited liability partnership is a business structure between two or more people with at least one general partner and at least one limited partner.

Requirements

General partners run the partnership (manages activities of the partnership).

Limited partners must not take part in the management of the business of the partnership and have no power to bind the firm. They are investors, but their liability is limited to the amount they contribute to the partnership, i.e. their investment. The partners may have their residential address outside of Queensland.

Both general and limited partners can be individuals or corporate entities.

A limited liability partnership must have a registered office address in Queensland to be registered.

Incorporated limited partnerships

In 2004, the Queensland Government established a new incorporated limited liability partnership that removed some of the heavy financial and management risks for limited partner investors. See Incorporated limited partnerships.

Business names and limited liability partnerships

Limited liability partnership:

a partnership, with two or more people, at least one of which is a general partner and at least one a limited partner, that is formed under the Partnership Act 1891 to actually conduct business in Queensland

a partnership which is formed when you register a statement of the partnership's composition under the Partnership Act 1891. In other words, the limited liability partnership's registration actually creates the limited liability partnership at law.

In a business name situation, all partners are equally responsible for any debts incurred by the business. However, in a limited liability partnership, the limited partner is liable only for the amount they contribute.

The limited partnership name must be registered as a business name before we grant registration for the limited partnership. The general partner or partners will be the proprietors of the business name and not the limited partners.

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