Family Limited Partnership - FLP

Finance Allah Shmoop What is a master Limited partnership or

MLP are multi It's just an LLC that is a

well generally publicly traded like every now and then in

a huge bull market an investment company goes public A

VC firm a private equity firm the firm and even

more popular Mlps helped the energy sector do things more

efficiently And in fact most MLP is living in and

around the energy sector That's kind of why they were

how they were designed legally to make that fool sector

a little more efficient financially Most of them started out

a small dozen member Elsie's with limited partners who gave

the general partners money to invest just like when they

were private and as when they were private profits weren't

taxed until they were distributed to the partners as ash

So then why did they want to become a mope

in the first place Well liquidity The firm itself was

doing really amazingly well and each partner wanted to get

cashed out at a big multiple of earnings as if

his seat in the partnership was worth being valued as

a business rather than just as a product And that's

how the enormous mutual fund feast and merchant bank Blackstone

started and ended as it is now a publicly traded

behemoth Same deal with Franklin Funds T Rowe Price in

a bunch of other professional partnerships which wanted its key

partners to be able to get liquid sell their holdings

and pay for divorces one into and have dough left

over for that convertible red portion with e upgraded wheel

rims Okay well an MLP does not pay taxes Profits

instead are passed through the individual partners who then pay

ordinary income tax on whatever they get And yes it's

generally ordinary income tax Sometimes they could make it be

long term gains but that's way more complicated for what

we need to worry about For now that is an

ML fee and so is this mutton lettuce pepperoni Delicious 00:01:56.34 --> [endTime] Yeah no