WEBVTT

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Limited Liability Partnerships,
also known as LLPs,

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are flexible, legal,
and tax entities

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that allow partners to benefit
from economies of scale

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by pooling resources.

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LLPs are everywhere.

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You've probably seen legal and
accounting offices with LLP

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after a list of names such as
Howser, Hunter, and Smith, LLP.

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LLPs also let
partners work together

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while reducing their
liability for the actions

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of the other partners.

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The written partnership
agreement in an LLP

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usually comes with annual
reporting requirements.

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The rules can vary
from state to state.

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So check with a lawyer in your
area for your local region.

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Generally, limited liability
means that if a partnership

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fails, creditors cannot go after
a partner's personal assets

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or income.

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Having business partners
helps a business

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spread risk, leverage
individual expertise,

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and establish a clear
division of labor.

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And LLPs are structured so
that each partner's liabilities

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are limited to the amount that
they put into the business.

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They also help reduce
costs by pooling resources

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while protecting the reputations
of the individual partners.

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Limited liability
partnerships can

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be found all over the world.

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They exist in many countries,
with a variety of differences

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from the US model.

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But in most countries, an LLP
is a tax flow-through entity

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intended for
professionals who all

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have an active role in managing
the partnership as a whole.

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