What Is A Limited Partnership?
What Is A Limited Partnership?
A limited partnership is just another type of partnership. It is different from a general partnership because it has both general partners and limited partners. A limited partnership is also considered a distinct entity from its partners.
What Is The Difference Between General And Limited Partners?
The general partners deal with the day-to-day operations of the partnership; they are liable for debts and actions of the partnership. Limited partners usually do not participate in day-to-day operations of the partnership; they bear no liability for debts or actions of the partnership. In essence, limited partners are more like investors rather than partners.
What Are The Benefits Of A Limited Partnership?
Here are three benefits of limited partnerships:
- For general partners, they can run the business but still have the flexibility to bring in investors as limited partners who do not interfere with the day-to-day management. This may be a better alternative for injecting capital into the business than borrowing.
- The partnership does not have to be dissolved to replace limited partners.
- For a limited partner, liability is limited to the capital that the partner has invested. In contrast, a general partner is personally liable for all business debts or claims.
How Do I Create A Limited Partnership?
It is best to have a limited partnership agreement, which spells out details of the partnership. You'll also need to register your LP with the state. Labor and employment attorney, Adair M. Buckner, can help guide you through these steps.
To set up a free initial consultation*, contact Adair M. Buckner today.
*(The free consultation does not cover actual review of documents or giving legal advice on a specific situation.)
When my husband passed away, I contacted the attorney that we had used to prepare our wills but was unhappy with his attitude of indifference. I discovered Adair Buckner and all of my issues were resolved. Adair is professional, compassionate, and extremely knowledgeable. She saved me a large amount of money by processing my will in the appropriate manner to best suit my situation.
I needed an attorney I could trust who could handle my legal concerns regarding my mother’s Living Trust. Adair Buckner firmly set things right. She was my voice when I had none and knew how to protect me in the midst of negative chaos. I recommend Adair to anyone seeking justice.
It is a great pleasure working with Adair. She is very professional and genuinely concerned about your needs. I have complete faith and trust in Adair and will always work with here for my attorney needs.
Trying to get our LLC changed over after moving to Texas was complicated, but Adair Buckner made the process so simple! We just gave her the details, and she handled everything quickly and professionally. Thank you, Adair, for making this part of our move stress-free!
It was way past time to finally get our Wills completed. This was something that was extremely complicated for us, but Adair and her assistant never made us feel like we were bothering them...and we (I) bothered them...a lot! Things were explained to us in a way that we could understand easily. Extremely professional and knows her stuff!
Adair is our employment attorney at ROI Online. She is an excellent resource to turn to as we grow and add employees. Adair is not only extremely knowledgeable in her area of employment expertise, but she is also very accessible and quickly responds to our questions and requests.
We appreciate Adair Buckner’s professional and personable service. Our legal needs were met promptly and succinctly. We would not hesitate (and do!) recommend her to our family and friends.
Adair was very helpful in guiding us through this process of creating our estate planning! She and her assistant were friendly to us each time we met them in their office. I would highly recommend Adair Buckner as an attorney of choice!