Definition of Limited partnership:
A corporate structure that combines the characteristics of a limited liability company with the characteristics of a company intended for tax protection, but does not create a legal entity separate from the owner. It usually has at least one limited partner (or full partner) and at least one limited partner (or nominal partner). Common partners are operators who control and direct the company and are jointly responsible for all debts and liabilities. LIMITED PARTNERS (1) cannot control or participate in the management of the company in any way (otherwise, they lose the protection of their liability), (2) they are only responsible for the amount invested What is and (3) they cannot manage. Their investment is without the consent of the recipients of the personally responsible partner. Both types of partners benefit from the company's profits, capital growth, rapid depreciation and investment loans, but also receive a common partner management fee. Limited partnerships can be established for any type of business, but are more popular in the areas of equipment rental, film production, oil and gas exploration, and real estate development. When a company makes a taxable profit, the limited partnership often closes and turns into a limited liability company. See also general partnership.
How to use Limited partnership in a sentence?
- The limited partnership for her short business plan was primarily for tax purposes, but Margaret still couldn't help but lose the bill after spending time together.
- Some people don't want the whole company to have their own name, so they only accept limited partnerships with fewer partnerships.
- If no one in a company wants to take full responsibility, they can look for a private limited company that does not have many responsibilities.
Meaning of Limited partnership & Limited partnership Definition