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Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: Colin Cody who wrote (294)	5/13/1998 8:58:00 AM
From: WallStBum	Read Replies (1) \| Respond to of 1383

Just wondering why the Clubs recommend going the LLP / S-Corp route. Isn't that to protect individual partners from the wrongful acts of their other partners, so that you're limited in liability to the your basis in the partnership. Under general partnership, don't you subject your personal assets to invasion if one of your partners does something to cause action against your partnership. Of course, as you essentially summed up though, what the hell can an investment partnership "do" to cause action from a third party? I can't think of one - I like your dropping a bag of cash on someone's foot though, that's pretty good. (g) But can't you become subject to lawsuit, if say, one of your partners embezzles money from a 3rd party and then puts that money in your partnership, which you then make lots of money with in the raging bull market and then distribute out to the individual partners. What then? Of course I reaching, but I'm just thinking out loud. dax