with a partnership agreement can i take out a bank loan in my investment groups name and have my investment group be liable instead of the members within the investment?
can “you” take out an investment loan in the partnership’s name?
can the partnership borrow money?
Depending on the dollar amount, though, a bank will probably require some kind of personal guarantee from the partners, which defeats your stated purpose. Banks like to know they’ll be repaid.
General partners are on the hook personally for partnership debts. Limited partners are not, but they don’t get a say in the operation of the partnership.
well i would provide a business plan to the bank in order to give them confidence that their money would be returned. What is the difference in general partners and limited partners? And what do you mean they dont get a say in the operation of the partnership?
General partners get to make decisions for the partnership and have unlimited personal liability for partnership debts.
Limited partners risk only their investment, but have no vote in partnership matters. They don’t direct investments. They don’t decide when to distribute funds. They usually have no rights except for what the general partners decided. IMO, only suckers choose to be limited partners.
Question maybe should be: “Should I do loan in Partnership?”
To most lawyers, P’ships are anethema and to be avoided like the plague, unless it’s a client’s and now he’ in trouble and having to have legal help.
I’d guess bad and/or problematic P’ships cause at least 30% or more of all commercial law business and like other lawyers I’ve had plenty of litigation and business over the years from them.
Most of us, I’d guess, would pretty much agree (not common with lawyers in any subject :rolleyes) that most any other kind of legal entity is to be preferred, if lawyer done or otherwise done right.
I’d rec you don’t DO anything with GP without first talking it over with your lawyer to see problems to avoid and how to do so.