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Respond to the following discussion topic: All of the Big 4 accounting firms changed their ownership...

Respond to the following discussion topic: All of the Big 4 accounting firms changed their ownership form from a general partnership to a limited liability partnership.

Discuss the legal and tax ramifications of this modification of ownership form.

Business   Accounting   
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A limited liability partnership is a hibrid form of business which has both the characterstics of both company and partnership.

Legal ramifications of this modifications of ownership form:

1)Partners can be added and reduced more easily as compared to ordinary partnership.

2)The liability is limited as the name indicates that the shares brought by partnes will be lost and partners personal assets won't be in trouble in any case(unless and until it is not intentionally done by the partner).

Tax benefits of limited liability partnership:

The taxation in Limited liability partnership is as in general partnership i.e it don't have any corporate or llp taxes on it.The profit recorded will be seen in partnership returns on which taxes would be paid and share received by partners will be taxable and seen in their personal return.

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