limited partners

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Related to limited partners: general 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 partners

Persons who invest in a limited partnership upon the condition that their maximum exposure to liability,if the venture is unsuccessful,is the loss of their investment.Contrast with general partner.

References in periodicals archive ?
For purposes of self-employment taxes, many members of LLCs have treated themselves as limited partners and have therefore reported that their distributive share of income was not subject to self-employment tax under Sec.
The FLP should preserve the general partner's fiduciary duties toward the limited partners.
The Partnership has rescheduled the special meeting to provide limited partners additional time to consider and clarify their available options.
The Schedule K-1s were distributed to each limited partner and the limited partners used the numbers on it as deductions in filling out their individual returns.
To Initiate Foreign Limited Partners to Potential Investment Opportunities and Expected Portfolio Risks in China's PE Market
As a consequence, the Tax Court found that A "essentially stood on all sides of the partnership's formation and approved the provisions of the KPLP agreement without negotiation or input from the limited partners.
The CPA should have verified that the information, or evidence of wrongdoing was correct, and insisted that the general partners notify the limited partners of the excess management fees.
1402(a)-2, which effectively subjected certain limited partners (primarily LLC members) to SE taxes, Congress placed a moratorium on their finalization.
The taxpayers, who were involved in the real estate business on a full-time basis, were limited partners in a partnership that owned and operated a shopping center.
These limited partners want to nurture the next generation of entrepreneurs, but expect a fair rate of return on their money as well.
1402(a)-2(h)(5) and -(2)(h)(6)(iii) provide that if substantially all of a partnership's activities involve the performance of services in the fields of health, law, engineering, architecture, accounting, actuarial science or consulting, then all individuals who provided services as part of the trade or business will not he considered limited partners.
The Internal Revenue Service held that LLCs may be treated as partnerships for federal tax purposes (depending on the specific provisions in the LLC's operating agreement and the applicable state law); as such, LLC members are in effect limited partners.

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