Question

Who benefits the most in a LLLP and why? (12pts).

Answer 1

A limited liability limited partnership (LLLP) is a legal entity which is a combination of certain forms of incorporation and has some advantages and disadvantages. Whether it is right for your investment is a decision you and your legal and tax advisors will have to make

In the real estate industry, the most common use of limited liability partnerships is by far the. For instance, when a group of investors get together to construct a project like a hotel, apartment complex, or commercial building, an LLLP may be created. Perhaps the creditors are more comfortable realizing that they are not responsible for the partner's debt and can only risk what they have invested. The partner general has the same degree of security.

The limited liability limited partnership arrangement may be used by normal operating companies not interested in real estate. One of the largest news outlets in the country, CNN is Cable News Network LP, LLLP and owned by Turner Broadcasting. There are also organized as LLLPs for car dealerships, publishing companies, research laboratories, and asset management firms. A limited partnership with limited liability can do almost everything that a limited partnership, limited liability company, joint-stock company or sole proprietor may do. This covers the buying and selling of securities, shares, mutual funds and savings bonds in the US.

The biggest benefits of creating an LLP are the restricted legal liability and the versatile management positions. An LLP does not subject its partners to limitless legal liability, as opposed to general partnerships. In other terms, the partners would not be forever responsible for that amount if anyone sues the LLP. Any responsibility for its creation would be limited to the sum they donated to the LLP. However, if the case results from a partner's deliberate act, the minimal legal liability protection would be violated.