3.0 United States Initiatives
The first jurisdiction to enact LLP legislation in North America was Texas in 1995. As of 2001, most, if not all, states in the United States have enacted LLP legislation, with at least one-half enacting "full shield" LLP legislation. The push to enact has emanated from professionals (accountants and lawyers) and their respective associations. In particular, accountants have been concerned over their liability exposure to third parties, a perceived insurance crisis in insuring their professional risks and their inability (in some jurisdictions) to practice in a corporate form of organization (as opposed to a partnership form). LLPs are a means to reduce such concerns.
It is our understanding that all the major accounting firms and many law firms in the United States are now organized as LLPs.
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