A limited liability partnership (LLP) is a form of business where partners retain individual liability but have no LIABILITY for most LLP obligations. An LLP is similar to a PARTNERSHIP except for the LLP’s lack of liability. LLPs are used by many professional groups as a means of maintaining a partnership while not being liable for each partner’s actions. Limited liability partnerships are a relatively new form of business. Texas passed the first laws permitting LLPs in 1991. Almost all states and the District of Columbia now have LLP statutes. In most states partners in an LLP are required to file with the secretary of state, pay an annual fee, and add the letters LLP or RLLP (R meaning registered) to their partnership name. Some states also require the LLP to maintain professional liability INSURANCE. LLPs can choose to have the LLP taxed as a partnership or a CORPORATION. If taxed as a corporation, the LLP pays corporate income taxes and partners pay personal income taxes only on compensation and partnership PROFITs distributions. Like a corporation, LLPs are unaffected by death or the withdrawal of partners. They continue to exist as a legal entity. Partner interests are not transferable in LLPs.