Limited Partnership

A Limited Partnership is typically comprised of a general partner and limited partners. Limited partners may invest in the enterprise and share in its profits (or loss) but do not participate in ongoing management or daily operations. Like the LLC, the Limited Partnership affords pass-through tax benefits but allows the limited partners to be passive members in the business enterprise.

• The limited partners' personal assets are separate from the liabilities of the enterprise and therefore protected.
• In a limited partnership the general partner is normally involved in the daily activities of the enterprise. The general partner's personal assets are not separate from the liabilities of the enterprise and are not protected unless the general partner entity is formed as a corporation or LLC, which is often done.
• Groups of investors in such ventures as real estate development projects or business opportunities that are syndicated to private investors will often choose the limited partnership structure.
• The investors only participate to earn a return on their investment. For tax and other reasons they have no need or desire to be active participants in the day-to-day management of the business.

The filing of a Limited Partnership itself with the State of Delaware is relatively straightforward. We can handle the process for you easily, but the filing does require the signature of the general partner. Included in our Limited Partnership filing kit is a sample LP agreement. 

For more information, call:
1-800-345-CORP (2677)
International clients must dial:
1-302-645-7400