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limited partnership
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limited partnership

business
Also known as: Kommanditgesellschaft, société en commandite
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Quick Summary

A limited partnership (LP) is a business structure with at least one general partner and one or more limited partners. The general partner manages the business and has unlimited liability for its debts. Limited partners contribute capital and share in profits but have liability restricted to the amount of their investment. LPs must be registered with the state. This structure is common for investments like hedge funds and private equity, where limited partners act as passive investors with no management authority. Income from partnerships is passed through to the partners and taxed on their personal returns.12345

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  4. General partner vs. limited partner: Differences, pros, and cons
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