What is an LLLP?
An LLLP (often called a "Triple LP"), has many of the characteristics of a Limited Partnership. It differs, however, in the ability to protect the business partners from a lawsuit. Specifically, when a partner is sued, the judgment can't include the assets within the company. In addition, this entity provides some liability protection for the general partners. In a Limited Partnership, by contrast, general partners are liable for the company's obligations.
Advantages
The biggest advantage is that the general partners have reduced liability. Limited Partnership's have a longstanding precedent of protecting Limited Partners (not necessarily General Partners). An LLLP extends similar legal protections for the person acting as the General Partner of an LLLP. An LLLP also maintains the benefits of the original partnership, such as taxation policies for partners. In most cases, all of the the Limited Partnership agreements and legal protections remain intact.
Creating a Limited Liability Limited Partnership
To create an LLLP, a Limited Partnership must be created or currently exist. The Limited Partnership may then vote to become an LLLP and create an amendment to do so. In almost all cases, the legal entity remains the same, despite the change in designation. Not all states allow an LLLP. However, many states that do not allow LLLPs domestically will recognize a foreign (out of state) LLLP. The popularity of the LLLP has also created immense demand, and momentum, for all states to allow LLLPs and recognize them legally.