In situations where a parent wants to involve minor children in the business, the general partnership form is probably preferable to the S corporate form.

Question

Quizplus · Accepted Answer

General partnerships do not provide limited liability protection, which means that minor children could be exposed to unlimited personal liability for the debts and obligations of the business. An S corporation, on the other hand, offers limited liability protection, shielding the personal assets of shareholders (including minor children) from the business's liabilities.

In Situations Where a Parent Wants to Involve Minor Children