Limited liability partnerships operate like a general partnership through their management, control, and tax structure, but also provide some personal liability protection to the partners.  In a limited liability partnership, an individual partner is not personally responsible for the wrongful acts of other partners, or for the debts or obligations of the business.  However, the individual partner is still liable to lose what they put in to the business, e.g. capital investment and expected profits. An individual partner is also personally liable for their personal misconduct or negligence.

Like a general partnership, a limited liability partnership does not pay any income tax.  The individual partners pay personal income tax based on their share of the income.  However, a limited liability partnership pays $800 annually in tax.

In order for an existing partnership to take advantage of becoming a limited liability partnership, the partnership needs to file an application for registration as a limited liability partnership with the secretary of state.  In California, limited liability partnerships are generally limited to professionals such as accountants, architects, attorneys and physicians.  In addition to generally being limited to professionals, all of the members of the limited liability partnership must be licensed to practice. 

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