Limited partner

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Related to Limited partnerships: Master Limited Partnerships

Limited partner

A partner who has limited legal liability for the obligations of the partnership.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
1.469-ST(e)(3)(i)(B) to LLC members, concluding that the regulations were obsolete because the LLC rules create a new type of business entity materially different from a limited partnership in that LLC members are permitted to actively participate in managing the business.
(9) Periodic gifts of limited partnership interests can reduce the parent's taxable estate.
The IRS contended that the Garnetts' ownership interests in the LLCs and LLPs were limited partnership interests under the second prong of the definition because Iowa law provided them with liability protection.
"The need to pigeonhole the ownership interests as either general partner interests or limited partner interests arises in the first instance from the fiction of treating an LLP or an LLC as a 'limited partnership" under Regs.
Mutual funds offer investors many of the same advantages of limited partnerships, including diversification, professional management, and certain tax benefits.
The fact pattern of the TAM was based upon a childless widow who transferred limited partnership interests to various family members.
Yet an LLC has certain tax advantages that a limited partnership or an S corporation doesn't.
One answer to these questions is the Family Limited Partnership (FLP).
To lack continuity, domestic LLCs must provide by statute or agreement that unanimous consent is required to continue after the occurrence of a dissolution event, whereas limited partnerships require only the other general partners or a majority of all the remaining partners vote for its continuation.

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