10 ways to use partnerships.
Partnerships or group LLC.s are a great way to combine many peoples assets, credit and knowledge into a powerful business.
Here are some examples of what partnerships can do.
1. Combine many small cash contributions into a substantial amount of invest-able capital.
2. Use business credit instead of cash to make investments.
3. Use a good credit partners personal credit to get real estate loans that benefit all the members of the partnership.
4. Give working partners a percentage of profits instead of cash payments for work done.
5. In some cases - allow all partners to receive equal passive tax deductions created in the partnership.
6. In some cases - allow one partner to receive ALL the passive tax deductions created in the partnership.
7. Allow individual partners to receive a pre-determined payment for specific types of work or contributions to the partnership.
8. Create a business entity with greater borrowing power, because of the combined credit strength and assets of all partners.
9. Create a business entity that may qualify for non-recourse loans.
10. Partnerships can allow you as the managing partner to receive 60% of all profits generated in the partnership. And as the saying goes - 60% of something is better than 100% of nothing. Or, 60% profits in 10 different partnerships is better than 100% of the profits in only 1 business that you own alone.
Barbara Leuin (bleuin@adelphia.net)
