If you are conducting business with another person or entity without a formal agreement, you may be doing business as a partnership. Without a written arrangement or filing, each partner may be personally liable for all of the debts of the business. This is known as a general partnership.

With the advent of limited liability companies, we would rarely advise our clients to enter into a general partnership. A limited liability company can replace a general partnership, and if properly structured and maintained, it will afford liability protection to the business owners.

Limited partnerships are sometimes useful. In such a partnership there is one or more general partners who or which are personally liable for the debts of the business, and one or more limited partners who are liable only to the extent of their investment in the business.

Certain clients may benefit by the creation of limited partnerships. These entities may afford tax benefits to our clients who need advanced estate planning. Other clients use these entities for asset protection.

To determine whether or not a limited partnership is appropriate for your needs and concerns, please arrange to meet with us to determine how such an entity might benefit you.

To schedule an appointment please call us in Bloomfield Hills, 248-642-5535, or in Ortonville, 248-627-2808, or contact us online and we will send you a response.