MGSC30H3 Chapter Notes -Limited Liability Partnership, Fiduciary, General Partnership
Document Summary
Understand partnerships as a vehicle for doing business. We are studying the legal structures in which persons can carry on business. Partnerships are used when (a) persons want tax losses to flow through to the partners, or (b) the law requires that the business be carried on through a partnership. Limited liability partnerships can help limit the general liability of partners in law and accounting firms. Limited partnerships can limit the liability of passive investors, so limited partnerships are often used as investment vehicles where tax losses can be used by high tax individuals. The unlimited liability of general partners for the debts and obligations of the business. The partnership act sets out defaults in a partnership relationship, so partners must consider how to structure a partnership if they wish to change these defaults. Partners are fiduciaries of one another and thus have dutiess. Consider how partnerships differ from corporations, and how a corporation develops from partnerships and trusts.
