A mixture is the Limited Partnership. The limited partner is really a mesh or sorts, responsible only to the amount invested initially and then responsible for the whole business as well. The taxes will still be paid by the partnership. Which is why the LLP formation is the most suitable choice to take . It's a safeguard to all investors, especially the minor ones who may be held to blame for debts not incurred by them and impossible to pay! It is best a experienced solicitor handle this. The LLP Formation Document has be comprehensive to encompass all matters and not only the financial ones. Everything from basic daily management and meetings to partnership duties and powers of attorney to loans and reimbursements needs to be covered. A special section needs to be dedicated to new affiliates getting into the business, members retiring or just leaving the alliance, and termination of staff or of members themselves in case of bad behavior.