Elton and Susie believe that each property will be successful over time as the neighborhood in which they are located is growing rapidly. They are meeting with you tomorrow and you want to have a preliminary partnership agreement strictly in bullet points for them that will cause them to engage you as their accountant. They are unavailable today to ask any questions beyond what is above. Design a very preliminary partnership agreement proposal based only on these facts and strictly in bullet point form. Prepare a list of questions that will help you modify your draft partnership agreement as they answer your questions during the meeting. This is about as real world as I can conjure up without getting way too complicated. convert to Limited Liability Limited Partnership (LLLP) Capital of the partnership shall be contributed in the form of property The net profits and losses of the partnership shall be divided based on a percentage pro rata to the capital contribution made by that partner + No interest shall be paid on the initial contributions to the capital of the partnership or any subsequent contributions of capital Partners shall have equal rights in the management of the partnership business Would one of you wish to be the general partner and the other the limited partner?
Do we want to have 50/50 interest in the partnership or base it off of outside basis contributions to the partnership?
You've reached the end of your free preview.
Want to read all 6 pages?
- Spring '11
- Corporation, Limited partnership, Types of business entity, partner, Income tax in the United States