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The limited partnership is a specialized form of partnership. The purpose of the limited partnership is to allow individuals to organize into an entity form that allows the flexibility of a general partnership while allowing for special rights, duties, and protections for limited partners.
If a limited partner wants to assign, gift, or sell his or her interest to another person, the interest that is received by the acquirer is generally an assignee interest, not a limited partnership interest. The rights of a limited partner are not usually transferable, only the economic benefit.
A limited partner, also known as a silent partner, is an investor and not a day-to-day manager of the business. The limited partners liability cannot exceed the amount that they invested in the business. A limited partnership by definition has at least one general partner and one limited partner.
A limited partnership (LP) is a business entity with at least one general partner (who has unlimited personal liability) and one limited partner (whose liability is limited to their investment in the company).
On the downside, LPs require that the general partner have unlimited liability. They are responsible for 100% of management control but also are on the hook for any debts or mishandling of business dealings. As well, limited partners are only allowed limited involvement in operations.
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LPs have been used since the 1800s as a way to allow some members to passively invest in a partnership without fearing reprisals for the actions of other partners. While limiting liability, LPs also keep the same flow-through tax treatment and much of the same contractual flexibility as a general partnership.
A Limited Partnership is a business entity that consists of one or more General Partners and one or more Limited Partners. A General Partner may be an individual or an entity, such as a corporation, that is responsible for daily management of the company.
A limited partnership (LP) exists when two or more partners go into business together, but the limited partners are only liable up to the amount of their investment. An LP is defined as having limited partners and a general partner, which has unlimited liability.
A general partner will share in the businesss profits and losses, which means theyre personally liable for the businesss debt. A limited partner, on the other hand, is only liable for the amount they invest in the business.
So, a limited partnership has several possible advantages over a company: No double tax on income crossing borders. The ability of partners to more easily utilise losses. More flexibility in moving profits/losses between partners. More flexibility, generally.

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