Limited Liability Limited Partnership

The video discusses a special entity type that exists in a few states, allowing for the formation of a limited liability partnership. This structure includes limited partners who receive protection from personal liability while maintaining the partnership's ease of use. The entity setup is complex, providing additional protection layers and ensuring limited partners, typically investors, do not engage in decision-making. This structure is common in real estate investments, where outside investors require limited partnership status within a limited liability partnership.

What is a unique feature of the special entity type discussed in the video?

• It exists in every state.

• It is only used in the technology sector.

• It allows for the formation of a limited liability partnership.

• It provides no protection from personal liability.

What is the primary role of a limited partner in an LLP?

• To actively manage the partnership.

• To provide personal services to the partnership.

• To invest without participating in decision-making.

• To ensure the partnership pays taxes.

How does an LLP maintain its structure?

• By requiring all partners to be active in decision-making.

• By converting into a corporation.

• By maintaining the ease of use of a partnership.

• By eliminating all partners.

In which sector is the LLP structure most commonly used?

• Technology

• Healthcare

• Real estate investment

• Retail

What do outside entities or individuals require within an LLP in real estate investments?

• No liability protection

• Full control over the partnership

• Limited partnership status

• Active decision-making roles