Overview of the Family Limited Partnership as a Personal Liability Protector
The limited partnership protects partners against the debts of the partnership.
But this remains true only if the limited partners do not actively participate
in the management of the partnership as outlined previously. Yet it is
easy for a limited partner to overstep his bounds and incur liability
for partnership debts. Therefore, limited partners should fully understand
the prohibited activities if they are to remain personally immune. Here
the limited liability company has a decided advantage: Its members can
freely involve themselves in company affairs without jeopardizing their
General partners are liable for all debts of the partnership, including
all tort and contract claims. Therefore, individuals should never become
general partners when the partnership has liability-producing assets or
activities. In this instance, they should form a corporation or limited
liability company, with minimal assets, to be the general partner.
YES, YOU CAN LOSE EVERYTHING!
You may think that your wealth is safe and that you don't need protection.
But don't delude yourself and accept reality — for every 60
minutes you spend making money, spend 60 seconds thinking about how to