Which statement is true about a registered LLP?

• A. Available to any business without professional constraints.
• B. Limited to professional partnerships and requires registration stating profession.
• C. Provides unlimited liability to all partners.
• D. Does not require any registration.

Answer: (B)

A registered LLP is a form of partnership designed for professional service firms and requires formal state registration that states the profession in which the firm will practice. This structure gives partners limited liability for the debts and obligations of the LLP, protecting their personal assets from the partnership’s liabilities (though partners remain responsible for their own professional misconduct). That’s why the statement describing it as limited to professional partnerships and requiring registration stating the profession is the correct one. The other ideas don’t fit: it isn’t available to any business without professional constraints, it doesn’t impose unlimited liability on all partners, and it does require registration.