What is one of the main benefits of forming a limited liability partnership?

One of the main benefits of forming a limited liability partnership (LLP) is the insulation of personal assets from business debts. This means that partners in an LLP typically have protection against personal liability for the debts and obligations of the partnership. In other words, if the LLP incurs debt or is sued, the personal assets of the partners are generally protected from being seized to satisfy those obligations. This structure encourages individuals to engage in business together without the risk of losing their personal assets, promoting entrepreneurship while ensuring a layer of financial security for each partner.

The other options do not align with the fundamental advantages of an LLP. Shared unlimited liability, for example, runs counter to the very essence of limited liability, and formalities similar to those of corporations typically pertain to more rigid structures, which LLPs do not require. Lastly, restrictive ownership structures are not a feature of LLPs, as they allow for flexible partnership arrangements.