Limited liability partnerships, or LLPs, are flexible legal and tax entities that allow partners to benefit from economies of scale by pooling resources. In this video, you'll learn a simple way to understand this concept through an easy and brief explanation. This allows partners to work together while reducing their liability for the actions of the other partners. Having business partners helps spread risk, leverage individual expertise and establish a clear division of labor. It also helps reduce costs by pooling resources while protecting the reputations of the individual partners.