LLP
Abbreviation with 2 meanings
| Stands for | Limited liability partnership |
|---|---|
| Meanings | 2 |
| Categories | Business & Finance |
LLP has two meanings. It stands for Limited liability partnership (company type) or Loan loss provision (banking).
Meanings of LLP at a glance
| # | LLP stands for | Context |
|---|---|---|
| 1 | Limited liability partnership | Business & Finance › Company Type |
| 2 | Loan loss provision | Business & Finance › Banking |
1. Limited liability partnership
Business & Finance · Company Type Abbreviations
Partnership in which partners are not personally liable for the partnership's debts or for other partners' negligence, while the business can still be taxed as a partnership. LLPs are widely used by law firms, accounting firms and other professional practices.
Example: Smith & Patel LLP, Certified Public Accountants, has offices in Chicago and Milwaukee.
In the US, LLP statutes differ by state, and many states limit the form to licensed professionals. The UK introduced LLPs through the Limited Liability Partnerships Act 2000; UK LLPs are corporate bodies and must file accounts at Companies House. India allowed LLPs from 2008. The Big Four accounting firms operate as LLPs in the US and UK.
2. Loan loss provision
Business & Finance · Banking Abbreviations
Expense a bank records in its income statement to build reserves against expected losses on loans, reducing profit in the period. Provisions rise when economic forecasts worsen or borrowers fall behind.
Example: Higher LLP of $1.4 billion wiped out most of the quarter's growth in net interest income.
The accumulated reserve on the balance sheet is the allowance for loan or credit losses. Under the US CECL model and IFRS 9, provisions are based on expected rather than incurred losses, which makes them more forward-looking. In company law, LLP means limited liability partnership.
Related abbreviations
More company type abbreviations
- KK – Kabushiki kaisha (stock company)
- L3C – Low-profit limited liability company
- LLC – Limited liability company
- LLLP – Limited liability limited partnership
- LP – Limited partnership
- Ltd. – Limited
- Ltda – Limitada (limited company)
- Ltée – Limitée (limited)
See all 78 company type abbreviations →
More banking abbreviations
- IMPS – Immediate Payment Service
- KYC – Know your customer
- LCR – Liquidity coverage ratio
- LDR – Loan-to-deposit ratio
- LOC – Line of credit
- MT103 – SWIFT MT103 message (single customer credit transfer)
- NACHA – Nacha (formerly National Automated Clearing House Association)
- NEFT – National Electronic Funds Transfer