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What is a limited partnership (LP)?

April 26, 2017limited Lp partnership

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What is a limited partnership (LP)?

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Limited partnerships consist of one or more general partners and one or more limited liability partners. A general partner actively manages the business and may contribute capital to the partnership. A general partner has unlimited liability for the debts and obligations of the business. A limited partner, however, contributes capital to the partnership but has no active role in running the business. The liability of a limited partner will only be the amount of capital they contributed to the partnership. Please note that our partnership agreement is intended for a general partnership and is not suitable for use by a limited partnership.