Latham & Watkins' London and Milan offices have converted to limited liability partnership (LLP) status this month as the firm seeks to protect partners' individual assets in the event of a firm-busting negligence claim.

The offices, which previously operated as UK multinational partnerships, have become New York LLPs, although the rest of the firm is organised as a Delaware LLP.

Latham becomes the latest major US law firm to make attempts to protect its UK partners. Earlier this year US rival White & Case became a UK LLP even though it remains a US LLP globally.

Allen & Overy partnership expert Richard Turnor said that many US firms choose to keep their UK operations as separate entities, because if they pull them into the main US LLP, the whole firm is subject to UK Law Society regulation.

He commented: "The firm would evaluate the various LLP structures as to the risk, tax and regulatory issues and select accordingly."

UK LLPs are widely considered to give greater protection than US LLPs. However, UK LLP firms have to disclose detailed accounts to Companies House.

The change comes as a host of UK firms make the switch to limited liability status following changes to the tax treatment of partnerships in several European jurisdictions.