Types of partnerships: Which partnership is a separate legal entity to its members and may hold land in its name?

• A. Conventional partnership
• B. Limited liability partnership
• C. Limited partnership
• D. Partnership firm

Answer: (B)

The main concept here is separate legal personality. A limited liability partnership is created as its own legal entity, distinct from its members. That means the LLP can own assets, including land, in its own name and can sue or be sued in that name. The members’ liability is limited to their contributions, so personal assets are protected for the partnership’s debts (assuming no guaranteed obligations or wrongful acts).

In contrast, a conventional partnership or a partnership firm doesn’t have separate legal personality—the business and the partners are treated together, liabilities flow through to the partners, and land and other assets are typically held in the partners’ names or under the firm name rather than by a separate entity. A limited partnership has some liability limits for limited partners, but the general partner still bears unlimited liability and the overall structure doesn’t provide the same clear separate personality as an LLP.