A limited partnership is a legal entity where two or more people are partners in a business, but have different levels of management authority and personal liability.
A limited partnership consists of at least one general partner and one limited partner. General partners own and operate the business and thus have personal liability for the debts of the business, while limited partners invest their money or property in the business, but do not have managerial authority over the operation of the business and therefore do not have personal liability for business debts beyond their investment.
A limited partnership is easier to form than a corporation or a limited liability company, as it requires fewer formalities, and can be utilized for a limited purpose to fulfill a specific objective. Therefore, it is often used by companies or individuals for complete a special project or other venture.
For more information on buy-sell agreements, please contact Antonoplos & Associates at 202-803-5676 or on the web at www.Antonlegal.com.