Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Limited partnership limited partners have shares of ownership however, they do not take part to manage the partnership. They are neither liable for the amount which are greater than what they had invested in partnership. It contrasts to the general partners who play roles in daily operations of partnership, and are personally responsible for any liabilities of partnership. This paper therefore compares and contrasts the risks and benefits of being in a limited partnership in regards to corporate and partnership law.
In limited partnership, there tends to be some benefits or risks that a limited partner might face. One of the benefits of limited partnership for a limited partner is that, it is easier for the limited partnership to attract their investors since the capital that they invest in businesses is the liability for a limited partner. Limited partners on the other hand, benefits from the general partners by focusing the efforts they have in order for them to run the business. The limited partners also have the freedom to leave whenever they feel like, or they can be replaced with other people without the dissolving of the Limited partnership.
Other benefit of a limited partner is where, the partner benefits from simple operating structure. A partnership, as it is opposed...
The partner only needs to file the certificate of partnership with the state office so as to register for the business name as well as, securing the license of that business. Because of that, annual filing corporation fees which are sometimes expensive are avoided when partnership is formed.
A limited partner also benefit in taxes advantage. In general partnership, there is flow of profit and loses from the business to the partners as compared to limited partnership, where taxes are levied on a limited partners' income, though, a limited partner fails to experience the case, since they get to share the profits and losses as they participate in the business only (Stark, 2007).
A limited partner also benefits on liability limits in that, their liability for partnership's debt is always limited to the money that individual partners contributes to partnership. This is different from the general partnership since any amount that is contributed usually becomes the asset of all the partners.
Another benefit of being in a limited partner is the benefit of flexibility. The decision can be easily made since the managers…
References
Clarkson, K.W., Miller, R.L., & Cross, F.B. (2012). Business law: text and cases: legal, ethical, global, and corporate environment (12th ed.). London: South-Western Cengage
Learning.
Goldstein, A.S. (2007). The limited partnership book. London: Garrett Pub..
Haupt, A., & Malange, N.J. (2010). Corporate law for commerce students: partnership, companies, and close corporations. London: Van Schaik Publishers.
Partnership and Employment Two Classes of Partnership A partnership is a business with more than one owner and has not applied to become a corporation or a limited liability company (Laurence, 2012). The two general types are general partnership and limited partnership. The general type is the more common. Each partner has a hand in its operation. It is also the simplest and least expensive business structure to create and maintain. Both
A partnership, once formed, acquires juridical personality separate and distinct from that of each of the partners. Therefore, a partnership may enter into binding contracts in its own name. Money, property and industry contributed into a common fund, whether invested at the time of formation or subsequent thereof becomes property of the partnership. Each partner shall be deemed co-owners of such property and shall have equal rights. Each partner shall
3.Location: what is required in order to expand into another state? The corporation would have to file as a foreign corporation in the new state. This requires filing for a certificate of authority with the Department of State. S-corporation 1.Longevity: can the company exist indefinitely? What happens upon the death or disassociation of an owner? A shareholder's shares are treated as the shareholder's real property and are distributed after death as such. Upon the
Forming a Partnership Role of Agency Business Association Agency refers to the capacity or ability of the agent to act on behalf of a business association or partnership. Agencies perform or execute numerous roles in relation to authority from the business association. The first notable role of the agency is ensuring effective and efficient contractual situations concerning the business association. Agency ensures that the contracts of the business associations are in line
Partnership or Alliance At a recent conference, Acxiom Corporation Company Leader Charles D. Morgan said that constantly changing technology and the growing global landscape means successful companies must select the right partners and alliances to help achieve a true customer-centric enterprise. In today's global marketplace, partnerships are becoming a major strategic move for many businesses. This paper discusses the elements of an effective partnership or business alliance in an effort to
Partnerships, Small Business Funding Options, And Marketing Partnership as a Form of Ownership: Pros and Cons In the words of Pride, Hughes and Kapoor (2011), "the U.S. Uniform Partnership Act defines a partnership as a voluntary association of two or more persons to act as co-owners of a business for profit." This form of business ownership has distinct advantages and disadvantages. When it comes to the advantages, it is important to note