Limited Liability Partnership (LLP)
Law firms, accounting firms, medical practices, architecture firms
15 Pa.C.S. §§ 8201–8221
Notice: Business entity selection and formation involve legal, tax, and liability considerations that vary by situation. This information is provided for educational purposes. Consult with a licensed attorney and tax professional for guidance specific to your business.
Key Facts
Formation Fee
$125
Liability
Partners protected from other partners' ...
Taxation
Pass-through (Form 1065)
Owners
Two or more partners (typically licensed professionals)
Liability Protection
Partners protected from other partners' malpractice; still liable for own acts
Tax Treatment
Pass-through (Form 1065)
Management Structure
Per partnership agreement
Ownership
Two or more partners (typically licensed professionals)
Advantages & Disadvantages
Advantages
Disadvantages
Formation Steps
Form (or already have) a general partnership
File Statement of Qualification with PA Dept of State ($125)
File annual registration renewal ($520)
Obtain appropriate professional licenses
Maintain required malpractice insurance
Annual Cost Notice
LLPs in Pennsylvania must file an annual registration renewal at a cost of $520 per year. Failure to renew results in automatic loss of LLP status, meaning individual partners lose their malpractice liability protection. Budget accordingly when choosing this entity type.