This week’s top stories include small business advice covering the following four topics:
- The 4 Nonnegotiable Traits of a Strong Personal Brand
- Three Questions Entrepreneurs Should Consider Before Bringing In
- How to Prepare and Write the Perfect Business Plan for Your Company
- I'm an Amazon seller and I experienced how Amazon's hidden fees and crushing requirements choke out small businesses
Each week we scour all the top business-related magazines and newspapers for articles with the best advice for the small business owner, so you do not have to.
In some cases, all the partners of a limited partnership may be investors only and not managers. The partnership may hire an outside general manager (employee) to make the day-to-day decisions, and therefore, acts as the manager. In this case, the general manager is an employee of the business, but since they are not a partner (aka owner), their income is just like that of an employee in any business.
A partner in a limited partnership that is a decision-maker (general partner) is considered an employee of the business by the IRS and is treated differently than limited partners. Income for general partners is considered earned income and is subject to additional taxes but also to additional potential tax deductions. Moreover, as a general partner, you are exposed to additional liabilities.