[label style=”inverse”]Since the creation of the LLC, partnerships have become a less desirable business entity option.[/label]
In a partnership
(also called a general partnership), the partners do not benefit from any liability protection—each partner is fully responsible for all of the entity’s debts and obligations. A business law attorney can create liability protection for a partnership through the use of additional entities, but this is a complicated solution.
A limited partnership
is a specialized entity that provides liability protection for certain members—the “limited partners.” It looks similar to an LLC, but it has two important exceptions:
- The limited partnership must include a general partner who assumes all liabilities.
- The limited partners have limited rights related to governance and operations of the business.
Limited partnerships were used frequently in real estate before the introduction of LLCs
, which offer the same protection more efficiently.
Contact business law attorney Steve Sneiderman to discuss your options and determine if a partnership is the right choice for you. If it is, he’ll handle all the legal steps required to set up your partnership and position your business for success.