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Some LP set up an S-Corporation or an LLC as the general partner and then the individuals who actually own the company are limited partners. This is also done I a lot of family limited partnerships. I didn’t understood this.oLLC: you can create an LLC that will shied the limited partnershipoLimited liability partnership: a form of partnership that allows professionals to enjoy the tax benefits of a partnership while limiting their personal liability for the malpractice of other partners. Method of creation: created by agreement of the partners. You have to file a statement of qualification for the limited liability partnership.Legal position: treated same as a general partnership.Liability: Varies, but under the Uniform Partnership Act, liability of a partner for acts committed by other partners is limited.Management: Same as general partnership Taxation: same as general partnership.Allows professionals to create their partnership and limit their liability for their malpractice. Each partner is liable for their malpractice. You have to file and fees are set by each state for filling statementsof qualifications, statement of foreign qualifications, and annual reports.Taxation some similarities to the normal partnership.Ex: doctors, attorneys, accountings.Doctors and attorneys use LLP a do as do accounting firms. Texas became the first state to enact an LLP statue. These are designed mostly for professionals who normally do business as partners in apartnership, but wish or need to limit lability.Chapter 19: Agency Agency: a relationship between two parties in which one party(the agent) agrees to represent or act for the other (the principal)oAgency relationships:
oAgent: person who agrees to act on behalf of another. Agrees to represent another, in this case the principal. oPrinciple: The principal has the right to control the agent’s conduct in matters entrusted to the agent. Person who the agent acts on behalf of.oFiduciary: A person having a duty created by his or her undertaking to act primary for another’s benefit in matters connected with the undertaking, but basically a relationship founded on trust and confidence. This is a special type of agent. They have special duties. (a trust was set up and there was money on that account, the trusty is the fiduciary in that account) what was the example she gave about the bank account and the fiduciary? A guardian is appointed to someone who is mentally incapacitated, the guardian is the fiduciaryIs based on trust and confidenceoFiduciary relationship: based on trust and confidenceoEmployer-employee relationship: An employee who deal with third parties are deemed to be agents. all employees that go out to do business with another entity, then the employees are agents and the employer is the principal.