It has no advantages over the sole proprietorship concerning continuity or estate planning. The limited partnership also provides additional resources. Its advantage over the general partnership concerns the issues of management and liability. A limited partner does not dilute the management of an operation. The departure of a limited partner does not affect the business as greatly as the departure of a general partner.
More paperwork is involved in a limited partnership.
It offers no advantages for estate planning or continuity of the operation. Unless the operation is very large, most farmers wishing to incorporate will most likely choose the subchapter-S format. The primary advantages are limited liability of participants and continuity of the operation. Since all profits are passed on to the stockholders as income, there are few if any tax advantages. On the other hand, very large corporations may benefit from C corporation status.