Business Limited Partnerships
According to Wikipedia, Limited Partnership is similar to a general partnership only that aside from the one or more general partners, there are also one or more limited partners. Since limited partnership does not have management authority, they also has limited liability and that they are only liable to the debts incurred by their firm as based on their registered investment but not on liable on company obligations.
Meeting with Progress for good Partnership
Allbusiness.com highlights the advantages and disadvantages of limited partnership.
Advantages of a Limited Partnership:
- It is attractive for investors to be limited partners.
- This set-up allows for general partners to use their expertise, make key decisions, and manage the business.
- Limited partners have the option to leave the business or be replaced, without the need for the limited partnership to be dissolved.
Disadvantages of a Limited Partnership:
- More filings, formalities, and state requirements with limited partnerships.
- 2.General partners assume personal liability in the business.