IMPORTANCE OF ENTITY PROTECTION – LIMITED PERSONAL LIABILITY
TYPES OF PROTECTION AND THE IMPORTANCE OF A NEVADA BUSINESS LAWYER
Limited Partnership
A limited partnership (LP) is a form of partnership similar to a general partnership (outlined below) except that in addition to one or more general partners, there are one or more limited partners. It is a partnership in which only one partner is required to be a general partner, thus limiting liability. As in general partnerships, a general partner acts as an agent of the business to bind all other partners in contract with third parties made in the ordinary course of the partnership’s business.
However, limited partners are akin to shareholders in a corporation, in that LPs have limited liability, or they are only liable for debts incurred by the firm to the extent of their registered investment and have no management authority (the limited partners do not have inherent agency authority to bind the firm unless they are subsequently held out as agents and so create an agency by estoppel or acts of ratification by the firm create ostensible authority). When forming a limited partnership it is important to contact a Nevada business lawyer to ensure that your rights are protected.
Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.
TYPES OF PROTECTION AND THE IMPORTANCE OF A NEVADA BUSINESS LAWYER
Limited Partnership
A limited partnership (LP) is a form of partnership similar to a general partnership (outlined below) except that in addition to one or more general partners, there are one or more limited partners. It is a partnership in which only one partner is required to be a general partner, thus limiting liability. As in general partnerships, a general partner acts as an agent of the business to bind all other partners in contract with third parties made in the ordinary course of the partnership’s business.
However, limited partners are akin to shareholders in a corporation, in that LPs have limited liability, or they are only liable for debts incurred by the firm to the extent of their registered investment and have no management authority (the limited partners do not have inherent agency authority to bind the firm unless they are subsequently held out as agents and so create an agency by estoppel or acts of ratification by the firm create ostensible authority). When forming a limited partnership it is important to contact a Nevada business lawyer to ensure that your rights are protected.
Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.
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