GRC 201 Lecture Notes - Lecture 5: Double Taxation, General Partnership

• School: Cal Poly
• Department: Graphic Communication
• Course: GRC 201
• Professor: Jeffrey Jon Farber

Document Summary

Not jointly and severablly liable in tort. Avoid personal liability for the malpractice of other partners. Supervising partner liable for acts of subordinate. At least one general partner and one limited partner. Limits the liability of some of the limited partners to their investment. Filing a certificate with the secretary of state is required. Liability is limited to the amount of investment. Ca(cid:374) forfeit this (cid:862)(cid:448)eil(cid:863) of i(cid:373)(cid:373)u(cid:374)it(cid:455) (cid:271)(cid:455) taki(cid:374)g part i(cid:374) the (cid:373)a(cid:374)age(cid:373)e(cid:374)t or the lp. Right to i(cid:374)spe(cid:272)t the lp"s (cid:271)ook: no personal investments at risk. Retirement, withdrawl, death bankruptcy or mental incompetence of a general partner (cid:449)ill trigger dissolutio(cid:374) u(cid:374)less the re(cid:373)ai(cid:374)i(cid:374)g gp"s (cid:272)o(cid:374)se(cid:374)t to (cid:272)o(cid:374)ti(cid:374)ue. The limited partner is entitled to return of capital contributors. Limited part(cid:374)ers" lia(cid:271)ilit(cid:455) is li(cid:373)ited to the (cid:272)apital i(cid:374)(cid:448)est(cid:373)e(cid:374)t. An llc is a hybrid entity that combines the limited liability of a corporation and the tax advantages of a partnership. Llc"s are i(cid:374)(cid:272)reasi(cid:374)gl(cid:455) (cid:271)e(cid:272)o(cid:373)i(cid:374)g the e(cid:374)tit(cid:455) (cid:272)hoi(cid:272)e for business.