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Limited Partner
(redirected from Limited partnerships)

   Also found in: Dictionary/thesaurus, Medical, Legal, Encyclopedia, Wikipedia 0.01 sec.
Limited partner
A partner who has limited legal liability for the obligations of the partnership.

Limited Partner
In a company, one who shares with at least one other partner, jointly and severally, a business' ownership. Limited partners exist in limited partnerships and limited liability partnerships, but in both situations they are only liable for the capital they have invested in case of bankruptcy. In limited partnerships, the limited partners have no management authority and confine their participation to their capital investment. In limited liability partnerships, all partners are limited and therefore at least some have management authority. Profits are divided among limited partners according to an arrangement formed at the creation of the partnership.

Limited partner. A limited partner is a member of a partnership whose only financial risk is the amount he or she has invested.

In contrast, all the assets of the general partner or partners, including those held outside the partnership, could be vulnerable to claims brought by the partnership's creditors.



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The Tax Court concluded that Congress had contemplated that entities that are substantially equivalent to limited partnerships are considered presumptively passive under Sec.
[ILLUSTRATION OMITTED] The court additionally found interests in tenancies in common that were held by the taxpayers were not interests in limited partnerships and, therefore, they also were not subject to the Sec.
First, limited partnerships are created not by the intention of the parties but by statute, by filing registration papers with the state.
 
 
 
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