Forming an LLP allows partners to tack on the benefit of some protection from legal liability. While its owners aren't completely separate from the business, limited liability partnerships allow each partner to be protected from the wrongdoings of other partners. However, LLPs are really only suited for small businesses, as they aren't as scalable as LLCs. Because LLPs and LLCs require a similar amount of paperwork and filing fees, most business owners choose to take the route of creating an LLC instead, since they'll receive more flexibility.