Posts Tagged ‘Legal liability’

3 Simple Ways To Prevent Identity Theft

In this time of economic downturn and financial difficulties, most industries are shrinking or cutting back. Not so the credit card industry. The credit card industry seems to be growing, not slowing down. According to recent studies, the average American household has at least one credit card. In fact, this survey found that 81% of American households have at least one credit card. Many American households have more credit cards than they can wisely handle.

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Do Limited Partnerships Offer Unlimited Potential?

Limited Partnerships

A limited partnership can be a more effective way of doing business than a straight partnership. A limited partnership offers some distinct advantages that are seriously lacking in a regular old partnership. There are some drawbacks, however, and careful consideration should be given to address these concerns as you go about structuring your business start-up.

The most important benefit offered by this particular business structure deals with liability. A partner in a limited partnership, as long as he or she is classified as a limited partner, has a much lower liability for the actions of the partnerships and the partners, and is therefore better protected, in case something goes wrong.

This liability, however, is increased if the business owner is classified as a general partner. There are different levels of partners in a limited partnership. There is a general partner, or partners. General partners control the partnership, and are responsible for the management, direction and liabilities of the partnership. The limited partners are partners who invest in the business but receive no control, or have limited say, in how the business is managed or run. In return for giving up this control, they are protected from many of the dangers of running the business regarding liability issues and asset protection.

A limited partnership is a much more complex way of doing business, and requires more money to form. In addition, there are many more requirements necessary in order to begin the process of doing business. Additionally, the tax advantages or disadvantages can have a significant impact on your bottom line if you decide to do business using this format. It is recommended that you seek knowledgeable and competent legal assistance in setting up this type of business structure, and deeply consider the advantages and disadvantages of a limited partnership.

Garrett Sutton‘s How to Use Limited Liability Companies & Limited Partnerships is a great guide that provides valuable advice on when a limited partnership works best. This type of business structure is neither right for everyone, nor for every business start-up. In some cases, however, a limited partnership is simply the best, most cost-effective and safest way of starting your business. This book will guide you so that you can evaluate for yourself whether your business start-up will benefit from a limited partnership structure or not.