[Avodah] Corporate Entities

[kennethgmiller at juno.com]

R' Micha Berger wrote:

> But back to our point... Shemitas kesafim doesn't apply to
> partnerships, and thus banks don't need to be corporate
> entities to be exempt. And I don't think halakhah has the
> notion of a business being more than an LP or LLP.

I didn't know that. And now I'm wondering how this would be implemented. And I suspect that this may go directly to the main question on this thread.

Suppose Reuven needs to borrow $1000. Shimon and Levi are each able to lend him $500. How is their partnership created in halacha? What do they need to do, in order to insure that the loan will survive shemitas kesafim? If they each lend him $500, that will be two independent loans, each of which will get cancelled. What do they need to do to form a parnership which is capable of making one single loan of $1000?

Phrased another way: If you are telling me that "Shemitas kesafim doesn't apply to partnerships", then I am suggesting that there might be no difference between a partnership and a corporation. *IF* a parnership creates a new entity distinct from the partners themselves, such that those partners are not the lenders and are not forbidden to ask the borrower to repay, *THEN* why would any of the partners have any responsibility for any of the other obligations that the partnership might have incurred?

Akiva Miller

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