Additional Limited Partnership Focus 

How Do I Choose The Proper Entity Type for My Business?

When beginning a business, you must decide what business forms entity to establish. Some of the most common forms of business are the sole proprietorship, partnership, limited liability company, and corporation. It starts with choosing a name for your company and filing an organizational document listing officers, appointing agents, setting up corporate records, creating bylaws or operation agreements, appointing directors, and even issuing stock or membership interests, depending on your entity choice. There are also tax and liability laws, insurance requirements, copyright and trademark laws, and more that will affect your name and entity choices. Our business lawyers are trained in these complexities and can assist you in making your business dreams come true.   

How Do Limited Partnerships or Limited Liability Partnerships Pay Taxes?

A Limited Partnership (LP) and a Limited Liability Partnership (LLP) may pass through taxation on the individual level through a Schedule K-1 to the partners and limited partners. Schedule K-1 is an Internal Revenue Service (IRS) tax form issued annually to invest in partnership interests. The purpose of Schedule K-1 is to report each partner's share of the partnership's earnings, losses, deductions, and credits.

What Is The Difference Between LLP and LLC?



Limited Liability Companies (LLCs) and Limited Liability Partnerships (LLPs) combine aspects of corporations and partnerships; however, they have different management requirements, liability protections, liability insurance obligations, and tax benefits which may vary from state to state.  LLCs are either member-managed or manager-managed.  LLPs are similar to a general business partnership, and each partner can manage all or specific duties as agreed to by the partners.  As for liability, LLP partners are only personally liable for their own negligence and not liable for another partner’s mistakes; however, an LLC member is generally only responsible for up to their initial investment in the LLC.  Importantly, LLCs and LLPs are not recognized as business entities by the Internal Revenue Service (IRS). Therefore, all taxes flow through to individual partners in accordance with their ownership interests through a Schedule K-1. Schedule K-1 is an Internal Revenue Service (IRS) tax form issued annually to invest in partnership interests. The purpose of Schedule K-1 is to report each partner's share of the partnership's earnings, losses, deductions, and credits.  You must be certain to check your state's specific law before forming an LLC or LLP.