Business Entitles Laws and Regulations

In: Business and Management

Submitted By kreka916
Words 607
Pages 3
Restaurant/Bar
Lou and Jose are going into a sports bar and restaurant business. They need an investor, so that’s when Miriam came into the picture. She will just be a silent partner and will get a percentage of the profits. When having two or more business partners, they can form a LLLP. Limited Liability Limited Partnership (LLLP) is ”a special type of limited partnership that has both general partners and limited partners, where both the general and limited partners have limited liability and are not personally liable for the debts of the LLLP.” (Cheeseman, 2010) This is also a form of a general partnership. For example if I go into a business with one or more partners to make a profit on whatever the business it is. That will be a general partnership.

Miriam wants to get in on the business, but don’t have the time to put in at the bar. She would be in a limited partnership. Limited partnership comes in two types, general partners and limited partners. Miriam would fall under the limited partners because Miriam doesn’t have the time to deal with the business aspect of the sports bar and restaurant. It also states that limited partners are “partners in a limited partnership who invest capital but do not participate in management and are not personally liable for partnership debts beyond their capital contributions.” (Cheeseman, 2010)

Taking control of a business takes a few different steps and with those steps is called a formation of a general partnership. In the formation of a general partnership the business has to “meet four criteria to qualify as a partnership under the UPA [UPA Section 6(1)]. It must be (1) an association of two or more persons (2) carrying on a business (3) as co-owners (4) for profit.” (Cheeseman, 2010) As long as the business partners are in the business together by sharing all responsibilities, they will always be in control…...

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