Benefits Of A Business With Acquiring A Limited Partner

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More capital can be brought into the business by acquiring a limited partner(s) The general partners can focus all of their time and efforts into the business while worrying less about money/capital If a limited partner dies or leaves the partnership can continue to operate. Limited Partnership Disadvantages General partners have to share the profits with another person(s) The general partners experience unlimited liability, must repay all debts, and their investors (limited partners) take priority when profits are dispersed. C-Corporation- A corporation stands alone, and it is a separate entity from the people who actually own the business or manage it. Certain characteristics disnguish a corporation from a sole proprietorship or a partnership. These characteristics are as follows: Limited liability of stockholders, the corporation continues to exist, ease of transferability of interest through ownership, and Capital funds may be increased. Liability: There is limited liability for the stockholders, meaning they are only liable for their investment they have put forth into the corporation. This is similar to a limited partner since limited partners are only liable for their investment that they have in a limited partnership. Income Taxes: The decision to incorporate has benefits when regarding having to pay income tax. The owners of the business enjoy fringe benefits that are tax deductible, for example, they may pay an employee 's health insurance
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