Quote:
Originally posted by sgtclub
This is not really correct. A GP of an LP does not have unlimited liability. It's liability is akin to the liability a director has in a corporation.
The point I was making is that we allow LPs and LLCs to shield themselves from unlimited liability, but we retain only 1 level of taxation (i.e., at the ownership level). So if we are willing to do this for these entities, I don't see a rational purposes for not extending that to corporate entities.
|
You are wrong on this. The GP has unlimited liability. The only cap on this is the fact that the shareholders of a corporate GP have limited liability, so if the corporate GP goes belly up, the shareholders aren't on the hook.
