Closely-Held Business Symposium: The Uniform Limited Partnership Act
Over the past few years, the number of limited liability companies (LLCs) has grown prodigiously. As a result of the favorable tax treatment of organizations treated as partnerships, unincorporated business organizations in general—and LLCs in particular—are being used in many types of business formally served by corporations. While the tax benefits have been the factor drawing people toward the use of unincorporated business organizations, the ability of the owners to order their relationship by agreement has been an attractive characteristic of unincorporated businesses. The essence of an unincorporated business organization such as a general partnership, limited partnership, or LLC (collectively in this article, an “organization”) is that its internal structure can be established by the partners or members (collectively, ”owners”) as reflected in the partnership agreement or operating agreement (collectively, ”organic agreements”). . . .