Business Formation: Limited Partnership
A limited partnership is a legal entity where two or more people are partners in 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 benefit of this business formation is that there can be an unlimited number of limited partners.
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 to complete a special project or other venture.
For more information on limited partnership agreements, please contact Antonoplos & Associates. To discuss your case with an experienced attorney, call 202-803-5676, or directly schedule an appointment. If you would like to find out more about business formation in general, check out our blog.
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