Announcements

Congratulations to Mary-Ann Andrews, a Sage Strategist, for graduating with a Masters Degree in Business Administration from The University of Phoenix!
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Cheri Hill will be moderating a panel discussion on Saturday, September 11 at C4CUBE's Entrepreneur's Boot Camp. The panel Cheri will moderate will be entitled, "The Marketplace: Early Decision Making --- The Idea/Market." The event will be held at C4Cube located at 300 East Second Street, Suite 1405 and registration is $99.00 ($175.00 at the door) which includes admission, handbooks & meals. This is a two day camp that will be held on both September 11 and September 12. For more information contact Lynne Keller at 775-622-9900 x 104 or email her at lynne.keller@c4cube.com.
Cheri Hill will be hosting a Sage Teleseminar with Linda McLean and the topic of discussion will be, "I'm Confused --- Are You a Mentor-Coach-Consultant." Linda McLean is a certified business and life coach and they will be discussing how you differentiate between the titles, what to look for and when and if it makes sense for you to utilize an outside consultant for your personal/business life. This teleseminar will be held on Wednesday, September 15, from noon - 1pm. .
Sage will be participating in the NCET Entrepreneurship Expo, Nevada's only Business-to-Small Business Expo. This event is FREE, open to the public and will be held on Friday, September 17, 2010 from 10am - 6pm at the Atlantis Casino Resort & Spa in Reno. For more information feel free to contact Emily Somerville at 775-853-4226 or Emily@NCET.org.
BLOG: Ask Cheri Hill

How to Incorporate - The Limited Partnership

Formed by filing a certificate of limited partnership with the Secretary of State. This is primarily used to raise money from “passive” investors (the limited partners) who will not be active in the business. LPs must have two categories of partners: one (or more) general partners, who are personally liable for all partnership obligations, and one (or more) limited partners, who have no liability for partnership debts.

Advantages

Limited liability – investors’ liability is limited to their respective investments in the partnership.
Separate entity – may sue and be sued, own property, protect its limited partners from unlimited liability, may raise capital by selling interests in the partnership, borrow money and exist independently of its partners’ mortality.
Management authority – managed by the general partner and not subject to decision making by limited partners.
Profits and losses may be allocated unequally among partners, so as to distribute tax benefits favorably.
Excellent vehicles for estate planning purposes, when used properly.

Disadvantages

Accounting and tax law very complex. Tax professional required.
Limited life – does not live in perpetuity, but lives for a stipulated period usually for the economic life of the assets its owns.
Lack of control – limited partners have no voice in management once the investment is made in the partnership.
Securities regulation – to raise money requires securities registration if offered to the public and advertising or solicitation is used to attract investors.
Terminating a partnership may result in tax liability for the partners.

Tax Implications

A partnership is a tax-reporting entity (IRS Form 1065) separate from its owners, but it is not a federal tax-paying entity. Instead, a partnership’s profits or loss passes through to the individual partners. Each partner must report his share on an individual Form 1040 tax return.