An LLC Masquerading As A Partnership

The outcome of business divorce cases often depends upon whether a litigant is an owner of the business entity.

Less often, the outcome depends upon what kind of entity the litigants own.

From time to time, the variety of business organization the parties own, and the correct rules of law governing their relations as co-owners, can be murky and blurred.

One might assume that the kind of entity in which its owners invested should be self-evident. After all, the menu of options is pretty limited: sole proprietorship, joint venture, general partnership, limited partnership, corporation, and limited liability company.

Imagine taking a New York general partnership, a New York limited liability company, the separate rules of law governing each, and putting them in a blender.