Which of the following statements is correct about the requirements of an LLP?

Multiple Choice
A. The business name must include the phrase Limited Liability Partnership or an abbreviation of the phrase, the parties must execute a Partnership Agreement, and the parties must file a form with the secretary of the state.
B. The business name must include the phrase Limited Liability Partnership or an abbreviation of the phrase, and the parties must file a form with the secretary of the state.
C. The parties must execute a Partnership Agreement identifying itself with the phrase Limited Liability Partnership or an abbreviation of the phrase, and the parties must file a form with the secretary of the state.
D. The business name must include the phrase Limited Liability Partnership or an abbreviation of the phrase, and the parties must execute a Partnership Agreement. The parties only need to file a form with the secretary of the state.

The correct answer is letter "B": The business name must include the phrase Limited Liability Partnership or an abbreviation of the phrase, and the parties must file a form with the secretary of the state.

Explanation:

A Limited Liability Partnership or LLP is the type of business structure where partners are only liable for what they contribute to the firm. This implies if the firm goes into bankruptcy, the personal assets of the partners are not subject to liability. Under this type of partnership, the business name must include at least its abbreviation (LLP) and when setting up the firm, a letter to the secretary of state must be addressed informing about the creation of the new entity and its core purposes.

jayilych4real jayilych4real · Answer 2 · 2021-10-22T15:10:11+02:00

The statement which is correct about the requirements of an LLP is:

B. The business name must include the phrase Limited Liability Partnership or an abbreviation of the phrase, and the parties must file a form with the secretary of the state.

A Limited Liability Partnership (LLP) is one in which there are various partners who own and control a corporation. In this type of business partnership, if the company goes bankrupt, there will not be a liquidation of the partner's assets.

As a result of this, we can see that some of the requirements for this type of business includes:

An inclusion of the phrase LLP
A form filled by the secretary of state

Therefore, the correct answer is option B