Quote:
Originally posted by Captain
In LPs, the limitaiton on liability was invented by lawyers who used a corporation as the general partner. The form originally had at least one GP with real unlimited liability.
LLCs represent a policy decision to accept the lawyer's scam as a new hybrid form of organization.
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This is not really correct. A GP of an LP does not have unlimited liability. It's liability is akin to the liability a director has in a corporation.
The point I was making is that we allow LPs and LLCs to shield themselves from unlimited liability, but we retain only 1 level of taxation (i.e., at the ownership level). So if we are willing to do this for these entities, I don't see a rational purposes for not extending that to corporate entities.
