IMPORTANCE OF ENTITY PROTECTION – LIMITED PERSONAL LIABILITY
TYPES OF PROTECTION AND THE IMPORTANCE OF A NEVADA BUSINESS LAWYER
LPs are attractive because they can provide shares to many individuals without the additional tax liability of a corporation (however, states set limits on this number based on this very reason). Each limited partner makes an investment of funds in the partnership and in return receives a pre-stated share of the profits.
Since limited partners (investors) have no control over the conduct of the partnership they should make sure they have considerable knowledge about the reputation and record of the general partner(s) and the type of business. In fact, state laws require that there be some pre-existing acquaintanceship between the general and limited partners to prevent unprofitable business relations. Having considerable knowledge about the general partner in Nevada is especially important because a general partner does not violate any duty or obligation to his limited partners merely because the general partner’s conduct furthers his own interest. If this type of arrangement seems preferable to you we highly recommend that you contact a Nevada business lawyer for further information to ensure that your rights are protected.
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