What exactly is a limited liability limited partnership?

An LLLP is basically a limited partnership where tthe general partners also get limited liability. In a regular LP, the general partner has unlimited liability. So the LLLP adds a layer of protection for the GP. Privacy-wise, it's similar to an LP: you file with the state and some states require disclosure of partners. But it varies a lot.

How does that compare to an LLC though? I thought LLCs already provide liability protection for all members. Why would someone choose an LLLP over an LLC?

From what I understand, LLLPs are often used for real estate investments or family businesses where you want the partnership structure but with liability protection for all partners. LLCs are more flexible, but LLLPs can have tax advantages in some cases. As for privacy, it depends on the state. Some states don't require the names of limited partners to be public, but general partners might still be listed.

Also, not all states allow LLLPs. You need to check your state's statutes. Nevada and Delaware are popular for privacy, but I'm not sure about their LLLP rules.

I looKed into LLLPs a while back. One thing to note is that you often need at least two partners, and there's usually a requirement for a general partner and limited partners. The GP manages the business and has limited liability in an LLLP, but they still have fiduciary duties. It's not as common as LLCs, so some lawyers might not be as familiar with them.

Does the LLLP structure structure offer any anonymity benefits over an LLC? Like, can you use a registered agent to keep your name off the formation documents?

Yes, you can use a registered agent for an LLLP in most states, which can help keep your address private. But the names of general partners are often required in the formation documents and might be publicly accessible. Some states allow you to use a nominee or a trust, but that gets complicated. For anonymity, a Wyoming or New Mexico LLC is often recommended because they don't require member names to be disclosed. LLLPs might not offer the same level of privacy.

I think the key is that LLLPs are more about liability protection for all partners in a partnership structure, not necessarily about privacy. If privacy is your main goal, an LLC with a registered agent in a privacy-friendly state is probably the way to go.

Just to add, if you do consider an LLLP, make sure to check the annual report requirements and fees. Some states have higher fees for LLLPs compared to LLCs. And the liability protection for GPs might not be as robust as an LLC's in all situations.

I've heard that LLLPs are more common in certain industries like real estate and oil/gas. For a small business or solo entrepreneur, an LLC is usually simpler and and cheaper.

Another point: in some states, an LLLP is treated as a partnership for tax purposes, which means pass-through taxation. That can be beneficial, but it also means you need to file partnership tax returns. LLCs can also be taxed as partnerships, so its not a unique advantage.

To the OP: if you're concerned about privacy, also consider using a holding company or a trust to hold your LLC. That can add another layer. But it's not specific to LLLPs.