Are Form 8655 Entity 2024

Hi, my name is Keith Hall. I'm a CPA and I work exclusively with small business owners, just like you. One of the big questions you have to address in operating your small business is how you are going to operate as a corporation, partnership, LLC, or sole proprietorship. So, let's talk a minute about operating as a partnership. What are the benefits, and what are the detriments? A partnership is relatively easy to organize and doesn't have a lot of filing fees with your state. By definition, a partnership is at least two people. As a general rule, there are two types of partnerships: general partnerships and limited liability partnerships. General partners are the most common form, especially if you have a friend or a co-worker with whom you formed the business together because you'll have a joint idea. Most likely, you're going to be general partners, which means that all of the liabilities of that partnership are also going to be liabilities of yours personally. So, that's something to keep in mind. If you are going to form a limited partnership, that basically allows you to raise money from other people who won't actually participate in the management. Those individuals are only subject to liability based on their ultimate investment. If the partnership borrows money, loses money, or there's any other liability issue that arises, a limited partner is not going to be subject to those additional liabilities; they can only lose their investment. As a general partner, you and the other individual that you form the organization together with are going to be liable for all of those types of things, so that's something to be aware of. One of the detriments of being a general partner, if you are going to invest in a partnership as opposed to just...