Learning More About Limited Partnerships Through A Business Attorney In Harrisburg
A limited partnership consists of two or more participants. Initially, the general partner establishes the company with the assistance of additional partners; the general partner is impacted the most by liabilities. The further partners are affected by liability based on the amount in which they invest into the venture. The assigned general partner is the majority contributor and has the most control over the company. To establish a limited partnership, a potential owner should consult a Business Attorney Harrisburg.
The Major Advantages of Limited Partnerships
All limited partners possess limited liability protection. Additionally, the company generates funds in which they have access to without limitations. There is not a board of directors or shareholders which have authority over how the funds are distributed or utilized. All partners have the right to acquire all financial records for the company for further inspection at any time.
The company can lessen liabilities by assigning another business entity as the general partner. This does not provide further protection for limited partners, as they are already shielded. With this assignment, the general partner could consist of a non-profit organization that could eliminate some tax implications.
Major Disadvantages of Limited Partnerships
There are not any limits on the liabilities imposed upon the general partner. This implies that customers or creditors may take legal action against this individual at any time for any reason. Since he or she is the majority investor, this partner is not required to report the day-to-day operations of the company to the other partners. This makes the additional partners passive investors without any authority. Any partner beyond the controlling party who becomes further involved is subject to unlimited liabilities.
Establishing the Company and Protecting it
Serratelli Schiffman & Brown P.C produces the proper paperwork to create the limited partnership. The prospective partners can determine through an attorney if it is most advantageous for them to establish the company in Pennsylvania. The owner could utilize the same attorney to acquire any government-based notifications for the partners and provide legal advice upon its arrival. All partners are protected by establishing whether outside investors are legitimate or intend to commit fraud. For further assistance with limited partnerships, owners can visit their website.
