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URL:  http://boards.fool.com/what-are-the-benefits-and-problems-with-creating-22635715.aspx

Subject:  Re: Legality question Date:  6/17/2005  2:36 PM
Author:  irasmilo Number:  79734 of 121482

what are the benefits and problems with creating a limited partnership? *grin*

Benefits:
-accomplishes what you want to do
-might be thought of as an investment club (no one said all of the club members had to stay very active, did they?)

Problems:
-requires another tax filing
-complicates the partners' tax returns as well
-may or may not handle the securities licensing issues


A limited partnership is more likely to be subject to SEC regulation than a general partnership. Investment clubs are almost always established as general partnerships. Nevertheless, IIRC investment partnerships with under 100 need not register with the SEC.

(NOTE: This requirement is independent of any requirement for the advisor to register.)

Ira

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