Limited Partnership 2017-11-24T10:58:16+00:00

When it’s time for investors, a limited partnership may be right for you

Bring in limited partners who invest but are shielded from personal liability.

Designate general partners who manage the business.

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What is a Limited Partnership ?

Limited Partnership (LP) is one of the partnerships in which at least one person act as “General Partner” and at least one person holds the position of “Limited Partners” among all the partners. In such partnership, General partner has all the management authority and personal liability while the LP act as a passive investor with no management authority.
Limited partnership offers many advantages, one of the advantages of a Limited partnership is that it makes it easier to attract investors since the only liability for limited partners is the capital they invest in the business. It also includes personal asset protection (for limited partners) and pass through taxation. For forming a LP you will need to file certificate of limited partnership with the appropriate state agency (usually the secretary of the state)
Before going for a LP, one should create a limited partnership agreement which spells out the details of the partnership. Impanix will help you to form LP online and the process will be easy, affordable and not time consuming.

Advantages of Limited Partnership

  • Include long-term rents for passive investors.
  • For the limited partners, there will be personal asset protection.
  • General partner have complete control of the entity and its assets
  • Without dissolving a partnership, a LP can be replaced or leave.

Disadvantages of Limited Partnership

  • For such partnership, the liability of partners for debts of the business is unlimited.
  • In LP, each partner is “jointly and severally” liable for the partnership’s debts which means each partner is liable for their state of the partnership debts as well as being for all the debts

How to apply for Limited Partnership

Complete our Simple Form
1. Answer our few easy questions in
little time
Your documents will be assembled by us in little time and file them directly to with the secretary of state.
In no time, you will receive your Limited Liability company package by mail.

Frequently Asked Questions

When two or more partners unite jointly to conduct a business in which one or more of the partners is liable only to extent of the amount of money that partner has invested then we can call it LP agreement.
“Partnership” generally refers to General partnership which means a business that has more than one owner and that has not filed papers with a state to create a specific entity such as corporation or limited liability company (LLC).
The major advantage when it comes to taxation in limited partnership is that it is a flow-through entity in which all the profits and loses flow directly to the individual limited partners. No taxes are paid by the business itself on its income.
Earnings an individual derives from a ren tal property, limited partnership or other enterprise in which he or she is not materially involved. Passive income is usually taxable with non-voice income; however it is often treated differently by the Internal Revenue Service (IRS).