A limited liability limited partnership (try saying that ten times fast!) is sort of a hybrid between a limited partnership and a limited liability partnership. Like a limited partnership, an LLLP has both limited partners, who have limited liability and risk losing only whatever amount they invested in the business, and general partners, who are personally liable for the debts and obligations of the business.
As in a limited partnership, only the general partners are allowed to engage in the day-to-day management of the business.
From a silent investor’s perspective, this sort of arrangement can help keep the general partners honest. After all, they’re a lot less apt to let the business flounder if their personal assets are at stake. Because of this feature, LLLPs are common in real estate ventures, with the financial backers acting as silent limited partners.
LLLPs have yet to really catch on and still are allowed in only about half the states. They are usually formed by converting an existing limited partnership.