Search results
Results from the WOW.Com Content Network
By default, each general partner has an equal right to participate in the management and control of the business. Disagreements in the ordinary course of partnership business are decided by a majority of the partners, and disagreements of extraordinary matters and amendments to the partnership agreement require the consent of all partners.
General partner is a person who joins with at least one other person to form a business. A general partner has responsibility for the actions of the business, can legally bind the business and is personally liable for all the partnership's debts and obligations.
Although a partnership itself is not a legal entity, it may acquire rights and incur liabilities, acquire title to real estate and sue or be sued. For example, a Gesellschaft mit beschränkter Haftung & Compagnie KG (GmbH & Co. KG) is a limited partnership with, typically, the sole general partner being a limited liability company. It can thus ...
A real estate limited partnership (RELP) is a specialized investment structure comprising general partners responsible for actively managing a property, and limited partners or passive investors ...
In case the general partner is a limited company, the legal form of the general partner, followed by "& Compagnie" (shortened to & Co.), must be included in the name of the company, resulting in combined legal forms such as: GmbH & Co. KG: the general partner is a GmbH; AG & Co. KG: the general partner is an AG
In the partnership agreement, the distribution is typically defined as all available cash flow, less a reserve which is determined by the general partner. Typically, the higher the quarterly distributions paid to limited partners, the higher the management fee paid to the general partner.
The rules governing partnership taxation, for purposes of the U.S. Federal income tax, are codified according to Subchapter K of Chapter 1 of the U.S. Internal Revenue Code (Title 26 of the United States Code). Partnerships are "flow-through" entities. Flow-through taxation means that the entity does not pay taxes on its income.
FLPs are partnerships limited to family members, hence the name. FLPs are typically holding companies, acting as an entity that holds the property (business interests, real estate investments, publicly traded or privately held securities) contributed by the members.