Limited Entrepreneur

Filed Under » , ,
Dictionary Says

Definition of 'Limited Entrepreneur'

A person who is involved in a limited liability company but does not actively manage it. One benefit of being a limited entrepreneur is not having to pay self-employment tax. LLC owners must be careful to not allocate more than 35% of the LLC's losses to limited entrepreneurs, otherwise the LLC would be classified as a syndicate and face different tax treatment.
Investopedia Says

Investopedia explains 'Limited Entrepreneur'

Limited partners are similar to limited entrepreneurs in that they also do not play an active role in a company's management and cannot be held responsible for any debts the company incurs. This means that any income or losses they receive from the business are usually considered passive for tax purposes.

Articles Of Interest

  1.

    Looking For Profit In Privately-Held Companies

    Private companies offer unique opportunities for those with the knowledge and resources to take advantage.

  2. Discover Master Limited Partnerships

    These unique investments provide significant tax advantages.

  3. Asset Protection For The Business Owner

    Could incorporating your business help protect it? Find out here.

  4. Basic Investment Objectives

    You might know about different asset types, but do you know how each type contributes to a particular goal?

  5. Steps For Adding New Services To Your Finance Business

    Advisors who seek to add additional lines of business to their practices need to carefully consider all the factors involved.

  6. How To Keep Your Small Business Afloat During Hard Times

    If an economic storm has your business taking on water, we have some tips for bailing yourself out.

  7. Can't Get A Bank Loan? Turn To Your Neighbor

    Peer-to-peer lending can be an inexpensive way to gain access to credit when banks are restricting lending -- but you need to understand the entire deal first before jumping in.

  8. 7 Unconventional Ways Businesses Can Borrow Money

    Find out how your business can get the money it needs - even when the bank says "no".

  9. Should You Head Back To Business School?

    Find out if an MBA is necessary for you to reach your professional goals.

  10. Business Grads, Land Your Dream Job

    Companies are in need of strategic candidates, not walking resumes. Find out how to set yourself apart from the pack and land the business career you've always wanted.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Zomma

    An options greek used to measure the change in gamma in relation to changes in the volatility of the underlying asset.

  2. Yield Elbow

    The point on the yield curve indicating the year in which the economy's highest interest rates occur. The yield elbow is the peak of the yield curve, signifying where the highest interest rates occurred.

  3. Xenocurrency

    A currency that trades in markets outside of its domestic borders.

  4. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.

  5. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.

  6. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=cff93a6270966762ece0a189b5270a6a