When it comes to forming a business with one or more partners, you can set up a structure that best suits your needs. The decision you make will be based on how you and your partners want to approach the business. Here are a few different kinds of business structures that you might consider.
Under a general partnership (GP), you and your business partners will effectively be the business. This has advantages and disadvantages.
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A limited partnership (LP) is another kind of partnership structure. However, with an LP there is a little bit more flexibility in the partnership. Under an LP, management duties rest with general partner(s), while limited partners are allowed to make investments in the company.
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A limited liability company (LLC) differs from a partnership, because it is a separate entity that is registered to the state. The biggest difference between an LLC and a partnership is that an LLC offers some liability protection.
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Which structure you select will be dependent on your business and preferences. An experienced business attorney can help give you detailed advice about different business structures and help you properly register and set up your company.