Asked by Juana Jacal on May 10, 2024
Verified
Sandra starts a new LLLP for her gelato business.She becomes the general partner of the LLLP and her friend Katy becomes a limited partner.There are no other general or limited partners in the LLLP.Apart from being a general partner,Sandra wishes to become a limited partner in the LLLP to increase her share of profit.Can she do it? If not,suggest a method by which she might be able to do it.
LLLP
A limited liability limited partnership, a type of partnership where some partners have limited liability (similar to limited partners in an LP) while also having the ability to participate in management.
General Partner
A general partner is an owner of a partnership who has unlimited liability and is typically involved in the day-to-day management of the business.
Share of Profit
An individual's or entity's portion of the net profits derived from a business venture, investment, or partnership.
- Differentiate among various partnership frameworks and the corresponding roles and liabilities of partners.
Verified Answer
HH
H?c hành - Gi?i tríMay 17, 2024
Final Answer :
ULPA section 102(11)indicates that the only limited partner and only general partner may not be the same person.Since Sandra is the only general partner of the LLLP,she cannot become a limited partner as well.
However,she and Katy might consent to adding another general partner to the LLLP.Once that is done,Sandra will no longer be the only general partner and hence,will be able to become a limited partner as well.
However,she and Katy might consent to adding another general partner to the LLLP.Once that is done,Sandra will no longer be the only general partner and hence,will be able to become a limited partner as well.
Learning Objectives
- Differentiate among various partnership frameworks and the corresponding roles and liabilities of partners.