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What is the best structure....

Want to pool together money from 3 investors, and buy a few small businesses.

Do you recommend creating a LPP (GP - LP structure where I'm the GP under an LLC)?

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Aug 25, 2016
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The BAF Group LLC

HG, I am not an attorney, but I believe that the General Partner in a Limited Partnership has unlimited liability. To answer your question, any attorney will need to understand far more about the nature of the businesses you intend to purchase, what liabilities exist within each, whether you intend to purchase property along with the businesses, and so forth. Each type of corporate entity will have tax as well as legal pros and cons, which will have bearing on the type of business you are considering at the time. That said, it may be that you do not want one entity. If you are purchasing several businesses - and again, I am not an attorney and do not even play one on TV - I would have a separate corporation or other entity, for each. There are multiple reasons for this: First, if a liability is created by one, such as a business failure or lawsuit filed against it, that liability will not threaten any of the others; second, if your original investors do not want to invest in a particular, new business, it leaves you free to partner with others; and third, when you grow a given business and then want to sell it, having a separate corporate entity with its own Tax Returns and Financial Statements allows you far more freedom, dealing more quickly and efficiently and potentially at a greater price, because the ability for the Buyer to finance the acquisition will be cleaner and quicker.

Jan 23, 2014
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Jan 21, 2014

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