PARTNERSHIPS

When it comes to business structuring there are two basic forms of Partnerships:  1) General Partnerships; and 2) Limited Partnerships.  General partnerships, of course, deal with shared management and responsibility of the partners.

LIMITED PARTNERSHIPS involve a structure where decision makers share general liability, while the limited partners are shielded from liabilities and decision making.  This structure is recognized in two basic sub-forms:  1) Limited Liability Partnerships; and 2) Limited Liability Companies.

Both of these limited liability structures have pass through tax structures.  The two limited liability structures can be set up in such a way as to determine control.  There are subtle nuances in the way the two act.  Limited Liability Companies seem to be the dominant arrangement for small businesses these days.

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