| The general partner is responsible for
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| | this form of business used for
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| running the business efforts. When people
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| | restaurants and other high risk business
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| deal with the limited partnership, they
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| | ventures.
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| are essentially dealing with the general
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| | What if you are considering investing in
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| partner and its employees. The limited
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| | a limited partnership, but also want to
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| partners, however, are in a unique
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| | participate in the running of the
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| position.
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| | business? Depending on the law of your
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| A limited partnership provides protection
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| | state, there may be a way to do this. It
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| from liability to the limited partners
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| | works like this. The general partner in
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| much as you would find with a corporation
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| | the limited partnership is converted into
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| or LLC. If the partnership is sued for
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| | a corporation. The limited partners then
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| something, the limited partners cannot be
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| | invest in the corporation in exchange for
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| named as defendants in the lawsuit. Ah,
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| | shares of corporate stock. One or more
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| but there is a tradeoff for this
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| | limited partners may then be hired by the
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| protection. To maintain the liability
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| | corporation as employees to help run the
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| protection, the limited partners cannot
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| | business.
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| participate in the day to day running of
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| | This is a unique strategy that is viable
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| the business. In practical terms, this
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| | in some states, but not in others. Make
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| means the limited partners are
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| | sure to get competent legal advice from a
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| essentially the deep pockets for the
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| | business attorney in your area before
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| business. They contribute the funds to
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| | implementing it. If it is viable in your
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| get the business up and running, but
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| | state, it can be a great way to approach
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| don't do much else. You will often see
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| | high risk business ventures.
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