Family Limited Partnership - FLP

  

See: Limited Partnership.

And think about it as including Uncle Joe, Sister Suzy, and Aunty Gin, along with mom and dad.

Related or Semi-related Video

Finance: What is a Master Limited Partne...3 Views

00:00

Finance Allah Shmoop What is a master Limited partnership or

00:06

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

00:13

well generally publicly traded like every now and then in

00:16

a huge bull market an investment company goes public A

00:20

VC firm a private equity firm the firm and even

00:24

more popular Mlps helped the energy sector do things more

00:27

efficiently And in fact most MLP is living in and

00:31

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

00:34

how they were designed legally to make that fool sector

00:37

a little more efficient financially Most of them started out

00:40

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

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the general partners money to invest just like when they

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

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taxed until they were distributed to the partners as ash

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So then why did they want to become a mope

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in the first place Well liquidity The firm itself was

00:58

doing really amazingly well and each partner wanted to get

01:01

cashed out at a big multiple of earnings as if

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his seat in the partnership was worth being valued as

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

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how the enormous mutual fund feast and merchant bank Blackstone

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started and ended as it is now a publicly traded

01:16

behemoth Same deal with Franklin Funds T Rowe Price in

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a bunch of other professional partnerships which wanted its key

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partners to be able to get liquid sell their holdings

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and pay for divorces one into and have dough left

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over for that convertible red portion with e upgraded wheel

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rims Okay well an MLP does not pay taxes Profits

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instead are passed through the individual partners who then pay

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

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generally ordinary income tax Sometimes they could make it be

01:46

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

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we need to worry about For now that is an

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

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