Partnerships

Partnerships A business that is owned by two or more people called “partners” Partners must come to an agreement on every aspect of the business

Limited Liability Partnership (LLP) Types of Partnerships General Partnership Limited Partnership Limited Liability Partnership (LLP)

All partners share responsibilities and liabilities equally. General Partnership All partners share responsibilities and liabilities equally. Ex – If a restaurant gets robbed, all partners are equally liable for the losses If a general partnership fails, it’s usually due to a lack of shared responsibility

Limited Partnership Only one partner has unlimited liability They are called the general partner The remaining partners contribute only money They can lose only their original investment

Limited Partnership Only one partner has unlimited liability They are called the general partner The remaining partners contribute only money They can lose only their original investment

Limited Liability Partnership (LLP) All partners are limited partners All partners have limited personal liability in certain situations Usually for a partners mistakes Usually reserved for professional firms Lawyers, doctors, dentists, etc…