A “limited liability partnership” (“LLP”) is a partnership for which its partners have limited liability for the debts of the partnership but unlimited liability for debts they accrue themselves as partners. For this to make sense, it helps to think of LLPs as having been invented for professional service providers. For instance, doctors cannot limit their liability for medical malpractice. If they commit malpractice, they are personally liable for the damage, even if they’ve set up an entity that otherwise provides limited liability. An LLP allows doctors to avoid personal liability for the malpractice of their partners. Contrast this with a general partnership, in which a doctor would be personally liable for a partner’s malpractice.

LLPs are still used today by some professional service providers, though PLLCs are often used instead in states that allow them.