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Archive for for August, 2015

General Partnerships

August 4, 2015

Relationship Between Partners

We have discussed fiduciary duties in the context of LLCs in our previous posts.  Just like LLC managers, partners in a general partnership owe fiduciary duty to the partnership.  Thus, partners must act as an ordinarily prudent person would, refrain from competing with the partnership, and generally act in good faith.  Additionally, they must put the best interests of the partnership ahead of their own.  So, in the farming partnership case above, the parties owe fiduciary duties to the partnership, which they would not otherwise owe, if it was just a farming agreement. … Read the rest

Comparison of LLC Statutes

August 3, 2015

Series Availability: The Latest Option

Another interesting difference among LLC statutes is the availability of series LLC.  This relatively new concept is said to have its origin in offshore financial institutions as a way of allocating assets and risks among a series of companies.  Series LLC offers numerous advantages, which include flexible structure, greater protection against liability, and lower filing fee and administrative burdens, but is also fraught with uncertainty, particularly with respect to its treatment under federal bankruptcy law and the laws of states that do not recognize series LLCs. … Read the rest

All postings are intended to be planning tools to familiarize readers with some of the high-level issues discussed therein. No posting is intended to be a comprehensive discussion and additional details should be discussed with your transaction planners including attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. This article should not be treated as legal advice to any person or entity.