Silent Partners and Corporations

[BookGirl09]

What is the name of your state (only U.S. law)? New York

Can a corporation have a silent partner? How would that work?

 

[HomeGuru]

What is the name of your state (only U.S. law)? New York

Can a corporation have a silent partner? How would that work?

**A: yes of course> Oops, I am a silent partner so should not be talking.

 

[Antigone*]

What is the name of your state (only U.S. law)? New York

Can a corporation have a silent partner? How would that work?

What class is this homework for?

 

[BookGirl09]

Clarification

Based on the responses, I'm guessing the question wasn't clear enough. A silent partner is someone who invests money in a business venture, but prefers to share the gain or loss anonymously and does not participate in the actual operation of the business. My question is how this kind of setup would work in conjunction with securities laws that govern corporations. If a primary investor would like to be a silent partner, anonymously sharing in the profits and risks of the venture, should the business refrain from incorporating? If such a business already is incorporated, can such a partnership be formed?

It may be surprising to hear, but some people outside of schools aim to learn about new things. I'm just trying to understand how these businesses run.

 

[Antigone*]

Based on the responses, I'm guessing the question wasn't clear enough. A silent partner is someone who invests money in a business venture, but prefers to share the gain or loss anonymously and does not participate in the actual operation of the business. My question is how this kind of setup would work in conjunction with securities laws that govern corporations. If a primary investor would like to be a silent partner, anonymously sharing in the profits and risks of the venture, should the business refrain from incorporating? If such a business already is incorporated, can such a partnership be formed?

It may be surprising to hear, but some people outside of schools aim to learn about new things. I'm just trying to understand how these businesses run.

There is nothing anonymous about being a silent partner. If you are trying to understand how these businesses are run, then you really need to do a lot of research. Asking a vague question on the internet doesn't count.