Jennifer Adams considers the use of a combination of limited liability partnerships and companies.
Limited liability partnerships (LLPs), often described as being a 'hybrid' combining features of both partnerships and corporations, allow two or more individuals to own and operate a business together while limiting their personal liability.
LLP vs Company
In a traditional general partnership, profits (or losses) are allocated to the partners in accordance with the agreed profit-sharing ratio. Each partner is personally liable for the actions, debts, and liabilities of the partnership. This became problematic, especially in large professional firms as they grew and expanded internationally. If one partner committed malpractice, all partners could be held financially responsible. These situations underscored the need for a business structure that protected
