Video: Limited and Limited Liability Partnerships

In this lesson, Nick Palazzolo, CPA, dives into the nuances of Limited and Limited Liability Partnerships (LLPs). He meticulously breaks down the distinct characteristics of LLPs, emphasizing the limited liability each partner enjoys and their protection from the partnership's debts beyond their own investment, which stands in contrast to General Partnerships (GPs). Focusing on the practical applications, Nick illustrates why professions like law and accounting often favor the LLP structure and how it shelters individual partners from others' actions. Delving into management and ownership transfer particulars, he clarifies the importance of unanimous consent among partners, signifying the protective and collaborative nature of LLPs. Also, Nick contrasts this with Limited Partnerships (LPs), explaining their requirement of one general and one limited partner, delineating their roles, responsibilities, and liabilities. He anchors the lesson with real-world examples relevant to professional fields and investment management, fostering a more practical understanding of these business structures' implications.