Question

Create the entity of your choice based on the entities covered in the assigned chapters. You must draft or fill out the proper form or forms required to create the entity, i.e. partnership you would fill out the forms required by the state of Illinois to form a partnership. Once you have created your chosen entity. You must explain the steps you took to create the entity. Fill out form, requested business name, filed documents with the state, etc. whatever steps you took to create your entity. You also must answer the following questions:

Why did you choose the entity you did?

The statute or law governing the entity.

What are the pros and cons of the entity you chose?

Answer 1

(Part-a)

* Partnership : Partnership is said to be as  an agreement wherein the persons come together and work towards achieving their common goals and objectives. Entrepreneurs starting a new venture should always run their business as its own legal entity.

Different types of Partnerships: -

a. General Partnership,

b. Limited Partnership,

c. Limited Liability Partnership,

d. Public Private Partnership.

There are three relatively common partnership types: general partnership, limited partnership (LP) and limited liability partnership. The entity or the type of partnership I choose is "Limited Partnership".

(Part-b)

Governing Law

The original source of limited partnership law is the Uniform Limited Partnership Act (ULPA), which was drafted in 1916. A revised version, the Revised Uniform Limited Partnership Act (RULPA), was adopted by the National Conference of Commissioners on Uniform Laws in 1976 and further amended in 1985 and in 2001.

The 2001 act was drafted for a world in which limited liability partnerships and limited liability companies can meet many of the needs formerly met by limited partnerships.

(Part-c)

Pros and Cons

*Pros

1. Capital Amount is Quite Generous

2. Limited Partner Faces Limited Liability for Losses

3. Shared Responsibility of Work

*Cons

1. Breach in Agreement (every individual’s opinion matters and should be taken into consideration.)

2. General Partners Bear Maximum Risk in Case of Debts

3. Limited Partners Do Not Have Much Say in Decision-making