Buy custom The Limited Partnership as a Choice of Business Structure
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| Topic: |
Business
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| Number of pages / Number of words: |
30 / 8206 |
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Business and individual debts are paid from the businessman’s personal account, and his personal assets can be the subject of a court judgment.
As the number of owners involved in the organization increases, so does the paperwork and complexity. General partnerships are treated like sole proprietorships that have multiple owners rather than just a single owner...
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However, there is one crucial difference: liability. In a general partnership, each partner is jointly and severally liable. In other words, an individual can sue the group of partners or a single partner for all damages claimed, even if it is the other partners who are at fault.
Outside of the limited partnership, the only type of unincorporated business structure that protects against personal liability is the limited liability partnership (LLP)...
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