it provides a basic partnership framework between two parties (p1 and p2) and the llp agreement is drafted in neutral form. it outlines the commencement of the limited liability partnership, the business of the partnership and its effective implementation and the members’ respective contributions. this limited liability partnership agreement (llp agreement) may be used upon the formation of a two parties llp, whereby the basic partnership framework needs to be set out.

an llp is easy to set up and administer. however, there are some instances where the “corporate veil” or a partnership can be pierced and partners may be open to personal liability. in some cases, new partners don’t even need to be directly involved in the operations of a business. the limited applications of llps or their relative difficulty to establish in some states may make other business structure better for your specific circumstances. in an llc, for example, owners can choose how they want to be taxed.