BUSINESSLAW CHAPTER 43 - $40,000 per year. Sabastian can...

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MARCH 2009 BUSINESS LAW CHAPTER 43 DEBRA BARONE ANSWERS TO QUESTIONS AND CASE PROBLEMS 1. The principal advantage of an LLP over an LLC is that existing partnerships can be converted into LLPs without renegotiating the original agreement. 2. Alan can not form a Subchapter S because he is not a US citizen. I would recommend he file an LLC. 3. A limited partnership was not formed as Kate did not file the forms. So, now all partners are jointly liable for all debts. It does not matter that Dr. Growbioski only contributed $100,000. He is still equally responsible. 4. Yes, the partnership is liable. It would not matter if the nurse worked for either the hospital or the partnership. She was working under Dr. Means and the LLP rules that the partnership is liable. 5. Sabastian can not receive pay for his services under the LLC unless it was stated in the agreement. The agreement did state that Jillian would receive
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Unformatted text preview: $40,000 per year. Sabastian can only receive any profits the business may make. 6. 7. Beth signed the contract, thus acting as an agent for the LLC. So she is not personally liable, only for the investment she initially made. 8. Owners of an LLC are not personally liable for debts but partners in a limited partnership have personal liability for partnership debts. It is hard to say in this case which is better. It may come down to tax issues which should be evaluated by an accounting firm. 9. The court found against Russell and Andrews under the ULPA and the RULPA. The general partner can not withdraw money without the signature of another partner. 10. 11. The court found that this was indeed a sale as Ralph and Maureen Hagan owned Stuart Court Apartments and formed an LLP. By transferring the apartments to an LLC, makes it a sale....
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This note was uploaded on 04/22/2011 for the course FINANCE BUSINESS L taught by Professor Daviddubois during the Spring '09 term at SUNY Empire State.

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BUSINESSLAW CHAPTER 43 - $40,000 per year. Sabastian can...

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