To what extent are the personal assets of a general partner, limited partner, or member of...

To what extent are the personal assets of a general partner, limited partner, or member of an LLC subject to a.) contractual liability claims, such as trade accounts payable, and b.) malpractice claims against the entity? Answer the question for partners or members in a general partnership, an LLP, a nonprofessional LLC, and a limited partnership.

Expert Solution

SITUATION	GENERAL PARTNER	LIMITED PARTNER	Member of LLC
a) Contractual liability claims, such as trade	Unlimited personal liability.	The limited partner’s liability is determined by the percentage of his/her investment in the partnership.	Liable only for the amount of his or her capital contribution.But the LLC owners would not be personally liable for that debt. The owner or employee who committed the act might also be personally liable for his or her actions but a co-owner of the LLC who was not involved in the act or wrongdoing would not be.
b) Malpractice claims against the entity	Unlimited personal liability.	Unlimited personal liability.	Unlimited personal liability. LLC will not protect you against personal liability for your own negligence, malpractice, or other personal wrongdoing that you commit related to your business. If both you and your LLC are found liable for an act you commit, then the LLC’s assets and your personal assets could be taken by creditors to satisfy the judgment.

ekkarill92 answered 1 year ago

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