what are the general statutory laws as it pertains to LLC, Limited Partnerships and Sole Proprietorship

UPDATED: May 28, 2009

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what are the general statutory laws as it pertains to LLC, Limited Partnerships and Sole Proprietorship

Asked on May 28, 2009 under Business Law, New York


B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

I'm not a New York lawyer, and there may be details in business organization laws there that might matter to you.  For reliable advice as to which form best suits your needs, please have a qualified attorney in your area review all the facts of your situation.  One place to find qualified lawyers is our website, http://attorneypages.com

An LLC, Limited Liability Company, is somewhat similar to a corporation, but requires much less formal recordkeeping in many instances.  It has limited liability, like a corporation, meaning that ordinarily only what is invested in the business is at risk, not the owners' personal assets (although lenders may ask for personal guarantees from you).  A limited partner has one or more managing partners, who run the business are personally liable for its debts, and can each make any and all business decisions binding on the others except as agreed between them;  it will also have one or more limited partners, who get a share of the earnings but don't make decisions and who are only risking the money they invest.  A sole proprietor is a single person business, individually liable for all business debts.  A single person can be the sole owner of a LLC.

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