Series 79: Limited Partnerships

Limited Partnerships

Limited partnerships (LPs) have become far less common since the advent of the LLC, but they are still used for specific business projects or investment purposes, particularly in the movie industry, real estate development, and oil and gas drilling. A limited partnership has at least one general partner, who manages the business and who is personally liable for the liabilities of the LP, and one or more limited partners, who contribute capital to the business but are not involved in running it, and whose liability for obligations of the limited partnership is limited to the amount of their contributions. For liability reasons, the general partner is often an LLC, corporation, or other entity with limited liability.

Most states have now adopted the Revised Uniform Limited Partner