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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121338  
Subject: Re: Legality question Date: 6/17/2005 2:36 PM
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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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