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.

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.

References in periodicals archive ?
469(c)(7)(a), which states that "[n]othing in the preceding provisions of this subparagraph shall be construed as affecting the determination of whether the taxpayer materially participates with respect to any interest in a limited partnership as a limited partner.
Identification of the features of the subject limited partnership units that affect marketability and control.
A family limited partnership has the ability to be a very powerful estate planning tool, with a broad range of applications.
New laws will force Scottish limited partnerships to disclose ownership and control information
The Garnetts argued that the entities were not limited partnerships under state law, so the limited partnership rule in Sec.
To avoid this situation, Americans can structure their businesses as limited partnerships, S corporations or LLCs.
Wien, pioneered real estate limited partnerships beginning in 1934.
The specific advantages of limited partnerships are rooted in the ways in which they address these problems.

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