The registered limited liability partnership was developed to help professional firms, such as lawyers, CPAs, and doctors, by providing a liability shield to protect a partner’s vicarious liability. All partners must be licensed by the state to practice. Limited liability limited partnerships are possible in more than 50% of the states. In a LLLP the general partner is also shielded from liabilities. The partnership agreement must be obtained and read to determine who has authority to act or sign for the LLP. A registered limited liability partnership is either a general partnership or a limited partnership which:
•has registered with the Secretary of State as a registered limited liability partnership (which registration must be renewed annually) and
•carries a statutorily prescribed minimum of liability insurance.
The partnership’s name must contain the words “registered limited liability partnership” or the abbreviation “L.L.P.” In addition to obtaining the authorization documents for either a general partnership or limited partnership, the Bank should obtain a copy of the registration application, verify that the partnership is currently registered and obtain a copy of the liability insurance policy.
A registered limited liability partnership is either a general partnership or a limited partnership which has registered with the Texas Secretary of State as a registered limited liability partnership. The registration of a limited liability partnership continues until it has been withdrawn or terminated. The partnership’s name must contain the words “registered limited liability partnership” or the abbreviation “L.L.P.” In addition to obtaining the authorization documents for either a general partnership or limited partnership, the Bank should obtain a copy of the registration application and verify with the Secretary of State that the partnership is currently registered. Information may be obtained from the Texas Secretary of State online at www.sos.state.tx.us or by telephoning (512) 463-5586.