Legal Entities

Question 1

Sole Proprietor

Answer 1

Personally for all debts

Question 2

General Partnership

Answer 2

Two or more persons engaged. Each general partner is personally liable for unpaid debts. Each partner is an agent.

Question 3

Limited Liability Partnership

Answer 3

General partnership that has registered with the state, General Partners are not liable for any new debt of the partnership. Everyone is permitted to participate in management.

Question 4

Limited Partnership

Answer 4

A business entity involving two or more persons, at least one general partnership. Each general partnership is personally liable for unpaid debt of the partnership. The limited partners are not personally liable for any new debts. Limited Partner are not agents of the partnership and they take no control. General Partners control business and have full liability.

Question 5

How tell if General Partner is Liable

Answer 5

Name has Liability in it. If the name has liability in it General Partner is not liable. Limited means limited partners are liable

Question 6

LLC

Answer 6

Created by law. Members are not liabile for debts. Appoint a manager.

Question 7

Nonprofit Corporation

Answer 7

Quals-public entity. Need Charter of Association, Bylaws, Good standing Association. Bylaws, Good Standing

Question 8

Corporations and LLC

Answer 8

Need Good Standing Certificate