as an investor for over 9 years and llc co-owner for over 5, i’ve thought a lot about utilizing my passion for investing in the most optimal way. the jist of buffett’s limited partnership was that he pooled money from friends and family, charged them a small fee to manage that money, and then made money for the firm by buying great stocks as investments. in a corporation that’s formed for handling investments, instead of taxes on investments getting passed through to the investor (capital gains and dividends taxes), the corporation is hit with the taxes and this comes out of their net income.