QUESTION

What happens when a general partner in a LLLP is a corporation?

Asked on Apr 25th, 2014 on Bankruptcy - Illinois
More details to this question:
What happens when a general partner in a LLLP is a corporation and the SHs of the limited partnership are also SHs of the corporation that is a general partner of the LLLP? I know that in an LLP the limited partner has less liability then the general partner. However, in an LLLP the advantage is in the fact that the general partner also has limited liability like the limited partner, although the general partner is involved in managerial tasks. So, if the LLLP gets sued, and all of their assets have been spent on damages, but there is a left over amount to be paid, who is personally liable for those obligations? Furthermore, how would I advise my client, a creditor who wants to lend money in the LLLP, to protect himself in this situation?
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1 ANSWER

Debt Collection Attorney serving Chicago, IL
2 Awards
You need to get personal guarantees of the individuals involved.
Answered on Apr 28th, 2014 at 1:53 PM

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