The correct answer is D. 1, 2, 3 and 5.
A limited liability partnership (LLP) is a hybrid business structure that combines the limited liability of a corporation with
the tax advantages of a partnership. LLPs are governed by state law, and the specific requirements vary from state to state. However, there are some general features that are common to all LLPs.First, LLPs are separate legal entities. This means that they are distinct from their owners, and the owners are not personally liable for the debts and obligations of the LLP. Second, LLPs have perpetual succession. This means that they can continue to exist even if one or more of the owners dies or leaves the partnership. Third, LLPs have limited liability. This means that the owners are not personally liable for the debts and obligations of the LLP, up to the amount of their investment in the partnership.
In addition to these general features, LLPs may also have other features that are specific to the state in which they are formed. For example, some states require that all LLPs have at least two owners, while others allow for single-member LLPs. Some states also require that LLPs file annual reports with the state government.
LLPs offer a number of advantages over other business structures. For example, LLPs offer the limited liability of a corporation, but they are also easier to form and maintain than corporations. Additionally, LLPs offer the tax advantages of a partnership, which can be beneficial for both the owners and the business.
However, there are also some disadvantages to LLPs. For example, LLPs are subject to more regulation than other business structures, and they may be more expensive to form and maintain. Additionally, LLPs may not be as well-known as other business structures, which can make it difficult to attract investors or customers.
Overall, LLPs offer a number of advantages and disadvantages. Whether or not an LLP is the right business structure for you will depend on your specific needs and circumstances.