1.13 : リミテッド・ライアビリティ・パートナーシップ

A Limited Liability Partnership, or LLP, is a business structure that combines elements of partnerships and corporations.

Both partnerships and LLPs involve multiple partners jointly owning and managing the business, with shared profits and responsibilities.

In an LLP, similar to a corporation, partners enjoy limited liability, meaning they are not personally liable for the firm's debts or liabilities beyond their investment.

LLPs are preferred by professional services firms like law and accounting firms, which often consist of professionals in the same field.

Take Legal Minds LLP, a law firm, as an example.

In this setup, each lawyer is a partner with a stake in the firm's success, but they are not personally liable for the debts or legal actions against the firm.

This means if the firm faces a lawsuit, the personal assets of the lawyers, such as their homes or savings, are protected.

LLPs are ideal for professions with high liability risks, enabling professionals to work together.

LLPs can cause profit disagreements among partners and are less attractive to outside investors.