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Legal Eagle Esq.
Legal Eagle Esq., Attorney
Category: Business Law
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Experience:  Business / Corporate / Real Estate
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Want to start a small Corporation in the state of Nevada. I ...

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Want to start a small Corporation in the state of Nevada. I want to also use an Limited Partnership.The corporation will serve as a General Partner.Me and my wife will be Limited Partners.When it comes to assigning LP Interest, who would own the most interest percentage wise. I realize there are several options, which option would maximize asset protection. Example 1. 49 % for me and my wife each, and 2% for the General Partner. Or perhaps i have this Backwards ? will most LP interest go to the General Partner.
Submitted: 8 years ago.
Category: Business Law
Expert:  Legal Eagle Esq. replied 8 years ago.
Hello

What is your ultimate goal/use for the entity?

Typically, in a limited partnership structure the the general partnership interest is minimized to a small percentage interest and the limited partners are allocated a significantly greater interest - (Example 1 in your question is the typical structure).

Also- it is common to use a pass-through entity as the general partner. Is there a particular reason why you are interested in using a corporation as the general partner?

DISCLAIMER-

Answers provided are only for educational and informational purposes. Answers provided do not give rise to an Attorney/Client relationship. Please Consult with an attorney in your state for legal advice.
Customer: replied 8 years ago.
my ultimate goal is tax minimazation and asset protection. Source of income is Stock market as a trading business.my only reason for using a corporation for general partner is classes that i have taken sugest this structure , plus i want to use an income splitting stratagy and i am under the impression you need the corp to do this. Startup capital approx 25,000, to 40,000 to startup the business
Expert:  Legal Eagle Esq. replied 8 years ago.
It is common to use a pass through entity as the General Partner- particularly since using a Corporation could cause a double taxation situation with respect to the income generated by the GP. You could use a corporation and elect "S" status to create the pass-through treatment and thereby avoid the double taxation of the 2% income allocable to the GP; an S corporation is not the typical GP though.

DISCLAIMER-

Answers provided are only for educational and informational purposes. Answers provided do not give rise to an Attorney/Client relationship. Please Consult with an attorney in your state for legal advice.
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