Katie and her siblings created a design company called Homeward Bound LLP. Although key business functions are centralized, each sibling is a licensed architect that designs, builds, and installs residential and commercial buildings for his/her own clients. Unfortunately, a recent design of Katie's that was ultimately created and installed for one of their clients resulted in water damage to the basement of the client's new home. The limited liability partnership:
O protects the partners from any suit by the client.
O guarantees that only those partners who were directly involved in designing and building this home face unlimited liability for claims against the firm.
O will enable the firm to quickly reorganize with only minor financial losses.
O guarantees that none of the company's partners will lose more than the amount they invested in the company.

A limited liability means that the business and partners are only liable for the original invested amount and that in case of failure the partners are only liable for the amount initially invested into the business and in this case if the client sues the partners, only the original worth of the business would be at stake. The client can not force the partners to pay off expenses from their personal wealth and assets.

If the partners were not a limited liability, the client could force them to pay off all the losses that may eat into partner's personal assets.

Hope that helps.