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What company is a limited partnership?

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).

What is the purpose of a limited partnership?

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.

What is a general partnership example?

Example of a General Partnership For example, lets say that Fred and Melissa decide to open a baking store. The store is named FM Bakery. By opening a store together, Fred and Melissa are both general partners in the business, FM Bakery.

Is a limited partnership the same as an LLC?

A limited liability partnership is similar to a limited liability company (LLC) in that all partners are granted limited liability protection. However, in some states the partners in an LLP get less liability protection than in an LLC. LLP requirements vary from state to state.

Is a limited partnership a sole proprietorship?

Limited Partnerships Defined This structure is a general partnership -- essentially the same as a sole proprietorship -- unless the partners sign legal limited liability partnership agreement. An LLP has at least one general partner and one limited partner.

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