LLP

1. Limited Liability
Partnership: Partners
and their Relations
and Taxation
In this presentation, we will explore the concept of a Limited Liability
Partnership, its key characteristics, the roles and responsibilities of
partners, and how taxation works in this structure. Let's dive in!

2. Definition of a Limited Liability
Partnership
Flexible Structure
A business structure that
combines the benefits of
a partnership and the
limited liability protection
of a corporation.
Separate Legal
Entity
Distinct from its partners,
allowing for contractual
capability and perpetual
succession.
Pass-Through
Taxation
Income and losses flow
through to partners,
avoiding double taxation
at the entity level.

3. Characteristics of a Limited Liability
Partnership
Shared Management The partners collectively manage the affairs
of the LLP.
Liability Protection Partners are generally not personally liable
for the LLP's debts and obligations.
Unlimited Partners No limit on the number of partners an LLP
can have.
No Ownership Transfer
Partners cannot transfer their ownership
interest without the consent of other
partners.

4. Partners in a Limited Liability
Partnership
General Partners
Actively participate in the management and
have unlimited liability.
Limited Partners
Contributing capital but have limited liability
and no active role in management.

5. Roles and Responsibilities of
Partners
1 Sharing Expertise
Each partner brings unique skills
and knowledge to the
partnership.
2 Decision Making
Collaboratively make decisions
that impact the business and its
future.
3 Profit Distribution
Fairly distribute profits based on
the partnership agreement.
4 Compliance
Ensure adherence to legal and
regulatory obligations.

6. Liability of partners in a Limited
Liability Partnership
1 Limited Liability
Partners are generally not personally liable for the LLP's debts and obligations.
2 Exceptions to Limited Liability
Personal negligence, fraud, or wrongful acts can expose partners to liability.
3 Joint Liability
Partners may be jointly liable for the actions of other partners in certain
circumstances.

7. Taxation of a Limited Liability
Partnership
Pass-Through
Taxation
Income and losses pass
through to partners'
personal tax returns.
Simplified
Reporting
No separate tax return for
the LLP; partners report
their share of income on
Schedule K-1.
Tax Flexibility
Partners have flexibility in
allocating profits and losses
to optimize tax liabilities.

8. Comparison of Limited Liability
Partnership with other business
structures
LLP vs. General Partnership LLP offers limited liability protection, while
general partnership exposes partners to
unlimited personal liability.
LLP vs. Limited Partnership LLP allows for all partners to have limited
liability and a role in management, unlike
limited partnership.
LLP vs. Limited Liability Company (LLC) LLC combines features of both partnerships
and corporations, while LLP focuses on
partnerships.