Hybrid ownership

Question 1

What are the hybrid options for partnership?

Answer 1

1. Limited partnership
2. LLC limited liability company
3. Professional corporation

Question 2

i. At least 1 limited liability
ii. 1 unlimited liability
iii. Family partnerships often work this way
-Mom and mom have unlimited liability and kids have limited liability and no say in the operations

Answer 2

Limited partnership

Question 3

i. Must file articles or organization
ii. All members have limited liability
iii. Why choose this?
-Malpractice and liability
-The tax laws changed in the 60s to benefit corporations (over partnerships) so business owners wanted to have some of the benefits

Answer 3

LLC Limited liability company

Question 4

i. Must only have members of the same licensed profession
-And only licensed professionals can hold stock
-Exceptions include a surviving spouse license where a license is temporarily held by the surviving spouse after death, so that business can continue
ii. Have the ability to incorporate and have the tax benefits but in the event of a lawsuit there is unlimited liability
iii. Only able to have 2 establishments, but there are workarounds

Answer 4

Professional corporations