Anchor Law Blog

Anchor Bay Law rarely recommends general partnerships. Despite their simplicity, they expose each partner to personal liability for the debts and obligations of the business, even those incurred by another partner. This risk is rarely justified when LLCs offer the same pass- through taxation with far greater protection and flexibility.

Even limited partnerships, which shield some owners from liability, come with rigid restrictions. For example, limited partners cannot participate in management without risking the loss of their liability protection.