At DLK Law group our understanding of tax codes and filings makes us community leaders in entity formation. A Partnership offers a distinct way to share the responsibilities and benefits of your business.
A General Partnership is an association of two or more people carrying on a business with the goal of earning a profit. A partnership is viewed as being one and the same as its owners. There is little formality involved in creating a partnership. In fact, if someone can establish that you are in business with somebody else, then there is a general partnership. The intention or lack thereof of having a formal partnership is not important.
Unlike general partnerships, Limited Partnerships can limit the liability and the involvement of certain partners. This is useful for attracting investment partners who’d like to participate in the profits of the business but not necessarily its risks or daily operations.
Over the past five years, the Family Limited Partnership (FLP) has risen from obscurity, as a little known tax loophole, into the preeminent vehicle for asset protection and estate planning. An FLP is frequently used to move wealth from one generation to another. It follows many of the same rules of a Limited Partnership but has some additional, specific advanteges.
Talk to one of our DLK professionals and ask if creating a Partnership is the right choice for you.
See also:
Limited Liability Corporations
Corporations
