How Do I Sign Illinois Assignment of Partnership Interest

How to document type sign assignment of partnership interest illinois

welcome to learn about law my name's kevin o Flaherty from O'Flaherty law and today we're gonna explain partnerships in Illinois we'll talk about the difference between a general partnership a limited partnership a limited liability partnership and the difference between all of those things and corporations and LLC's if you want to learn more about escorts LLC's and C corporations we have an article in video about that at learn - about - law comm so first let's talk about a general partnership this is your basic form of partnership anytime two people are doing business together without incorporating in a different way they are a general partnership de-facto so general partnerships may or may not have a partnership agreement that governs the relations between the partners but they don't file any corporate papers to incorporate and they don't have to follow any corporate formalities like meetings of the shareholders to make decisions the flipside of that is they unlike a corporation or an LLC they don't get liability protection meaning that partners in a general partnership are personally liable for all of the partnership's debts and other liability they have passed through taxation mean that meaning that the partnership is not taxed at the partnership level the profits from the partnership are just taxed on the partners personal tax returns so it's the simplest form of doing business with another person you're not adding any corporate layers on top of things a limited partnership is similar to a general partnership except that there are general partners and limited partners general partners have all of the management rights and all of the personal liability so like a general partnership general partners in a limited partnership are personally liable for all of the partnerships debts but they have all the management control limited partners are silent investors that have no control and also no personal liability for corporate debt on unlike a corporation or LLC there aren't a lot of corporate formalities involved just like a general partnership but again the downside is that general partners remain fully liable personally for corporate actions limited partnerships are used a lot in family estate planning they are good for protecting assets from creditors they are less useful in actually operating a fully functioning business because of that lack of liability protection and that lack of that there's also lack of tax benefits that you would get by being an S corp but they're good for generally family estate planning or short-term projects with some silent investors that want liability protection finally limited liability partnerships are kind of the other end of the spectrum from general partnerships there are general partners and limited partners but general partners are protected from liability for one another's wrongdoing they're only liable for their own wrongdoing limited partners just like in a limited partnership are still have no control over the partnership and no personal liability so limited liability partnerships are an extra layer of liability protection over a limited partnership and they basically make the partners only liable for their own actions as opposed to the actions of the other partners these are often used for professions like lawyers architects doctors where the main liability is personal malpractice so if you have any questions you can leave them in the comment section below this post I learned - about - law comm or below the video on our youtube station if you found this helpful please subscribe to us on YouTube SoundCloud Apple podcast or wherever you listen your podcast or watch your videos if you need some help please give us a call at six three zero three two four six six six six at six three zero three two four six six six six we have four free consultations in many areas of law and we have several geographic locations for your convenience thank you so much for watching and listen thanks so much for watching our video if you have any questions feel free to comment below click the subscribe button for new videos every week and download and review us on iTunes visit learn - about - law comm for other legal related articles and videos visit our business podcast and video blog seizure business comm and visit making real estate fun for real estate videos and podcasts call us at six three zero three two four six six six six for a free consultation