Advantages of a limited partnership


Ralphael and Mitch have general commitments from several people to invest in their exotic animal park. Mitch wants to form a limited partnership, but realizes that every limited partnership must have at least one general partner who manages the business and is subject to unlimited liability for the business and its debts. Mitch thinks this is no problem because the general partner can be a "shell" corporation with Mitch and Ralphael at its helm. Ralphael thinks an LLC might be the best approach because the investors are relatives that have opinions on the business, and some are professionals who could offer valuable expertise. Compare the advantages and disadvantages of a limited partnership with an LLC and determine which is the most appropriate form of business for this venture.

Request for Solution File

Ask an Expert for Answer!!
Business Law and Ethics: Advantages of a limited partnership
Reference No:- TGS0537340

Expected delivery within 24 Hours