Limited Partnership - LP


DEFINITION of 'Limited Partnership - LP'

Two or more partners united to conduct a business jointly, and in which one or more of the partners is liable only to the extent of the amount of money that partner has invested. Limited partners do not receive dividends, but enjoy direct access to the flow of income and expenses.

This term is also referred to as a "limited liability partnership" (LLP).


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BREAKING DOWN 'Limited Partnership - LP'

The main advantage to this structure is that the owners are generally not liable for the debts of the company.

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  1. Do mutual fund companies pay taxes?

    Mutual funds do not pay taxes on income if they meet certain regulatory requirements. Mutual funds are incorporated as regulated ... Read Full Answer >>
  2. What are the tax implications of owning a master limited partnership (MLP)?

    There are significant tax benefits to owning units in a master limited partnership (MLP), although most investors do not ... Read Full Answer >>
  3. What's the difference between limited liability partnership and general partnership?

    A partnership is a business agreement between two or more people who are called partners. Each partner owns a share of the ... Read Full Answer >>
  4. I am starting a limited liability company (LLC). I will be the sole member. Can I ...

    In a word, yes. A limited liability company (LLC) is eligible to establish a simplified employee pension (SEP). Keep in ... Read Full Answer >>
  5. What are Schedule K-1 documents used for?

    The Schedule K-1 is a tax document issued for an investment in partnership interests. The purpose of the Schedule K-1 is ... Read Full Answer >>
  6. What's the difference between publicly- and privately-held companies?

    Privately-held companies are - no surprise here - privately held. This means that, in most cases, the company is owned by ... Read Full Answer >>

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