An LLLP — limited liability limited partnership — is a more recent legal entity your business can pick as its legal structure. It's a hybrid of other business entities, but it's considered a form of an LP or limited partnership. However, in an LLLP, both general and limited partners are shielded from personal liability if there is a case of debt or legal action against the business.

An LLLP provides its partners equivalent liability protection as within an LLP or limited liability partnership. An LLLP requires one or more general partners and mainly comprises limited partners.

The most common LLLPs are within the real estate industry, where groups of investors establish hotels or several commercial or residential buildings. An LLLP business entity is a suitable setup for projects since investors may not want to be liable for the company's debts and can only forfeit the amount of their investment.

Although LLLPs are most popular with real estate companies, other types of businesses also benefit from LLLPs. It may seem surprising, but the major media company CNN is set up as an LLLP. Other examples include asset management companies, car dealerships, and scientific companies such as research labs.

As with most types of business entity, the mandates to set up an LLLP vary from state to state. Therefore, you'll want to check in with your state's guidelines to see what's needed from a paperwork and filing standpoint.

Why check in with your state? Not every state acknowledges LLLPs, so you'll want to re-check that the jurisdiction where you wish to conduct business is among those that recognize this business entity. For example, LLLPs are not available in California, which is essential if you start a business in California. However, about half of U.S. states recognize these entities.

You'll either uncover specific guidelines from your state about how to set up an LLLP directly, or you will need to set up an LP and then file for liability for general partners, which will convert your business entity to an LLLP. There will also be a charge to set up your business entity, whether or not you file directly as an LLLP or start as an LP.

A Limited Liability Limited Partnership ("LLLP" or "Triple LP") is considered for enhanced protection from lawsuits for companies. Assets held by the LLLP do not belong to the individual partners themselves, and recent Nevada statutory law for lawsuit protection. A creditor may not pierce the Limited Partnership. They are limited to only receiving a "charging order" as the sole remedy - which may prove fruitless if the General Partner decides not to provide distributions.

Limited-Liability Limited Partnerships vary from traditional Limited Partnerships. General partners are separately and jointly responsible for the obligations and debts of the limited partnership. In contrast, for LLLPs, partners are not legally liable for duties and debts that exceed their capital contributions. The Triple LP should also own investments, not inside a Retirement Account (i.e., Mutual Funds, Brokerage Accounts, etc.)