Georgia law is not kind to general partnerships. Indeed, general partners can be jointly and severally liable for any partnership obligation, and worse yet, any obligation of an individual partner for actions while acting as a partner. On the other hand, Georgia law offers broad protection to partnerships that have followed the statutory requirements for a limited liability partnership an “LLP”. Few law firms, however, take full advantage of the protections available to them, and many fail to organize their partnerships to best protect the partnership’s and their individual partners’ assets and management. Unfortunately, by the time a problem arises, it may be too late to take corrective action.
By taking a few simple steps in advance, however, law firms in Georgia can maximize the benefits of a limited liability partnership, many of which are often overlooked in drafting limited liability partnership agreements and implementing partnership guidelines. Here are five steps that every law firm should take in order to protect its partnership and more importantly, its partners, in advance of any challenges that may come.
