TAX 4001 Lecture Notes - Lecture 10: Limited Liability Partnership, Limited Liability Company, Joint Venture
Document Summary
Joint venture- formed when individuals or separate business entities get together for the specific purpose of earning profits by jointly operating a trade or business. Pass through entities -taxation is passed through to owners. Strongly recommend putting partnership agreement in writing. All partners have liability for the debts of the partnership. These can be allocated based upon ownership percentage. Has limited liability to certain of the partners. 2 types of partners - general partners & limited partners. Limited partners are capped on liability by the amount that they have invested in the company. All limited partnerships must have at least one general partner. Limited partners are considered to be investors. Not allowed to participate in day to day operations. Partners are not liable for the other acts of the other professionals ex . malpractice lawsuit- only person that caused is liable. No liability to either the entity or the owners. Very popular but hard to be lent money.
