LP (Limited Partnership)

Our network of professionals are able to get constant referrals from anyone who visits our site.

1. Answer a few simple questions about your company.

2. We will take care of the paperwork and the filing of your documents

3. You will receive hard copies of your LP package via mail.

How It Works

Advantages of Forming an LP

Limited Liability

Forming an LP has its benefits, such as tax benefits, liability limits, and the lack of turnover issues. It also allows one to raise capital from investors without having to worry about them wanting to have a say in the running of your company.

The amount of liability one has depends on one's role as a partner. As a limted or silent partner one's liability is limited to what they invest in the company. As a general partner, however, one is more liable.

Two Members Required

Separate Legal Entity

Unlike a corporation which can have as few as one shareholder an LP is made up of at least two or more partners. The roles of the partners may however vary and only one general partner is required.

Like an LLC and corporations, an LP is recognized as a separate legal entity from its "members."

Guarantor Liability

Alter Ego Liability

Where an LLC member has personally guaranteed the obligations of the LLC, he or she will be liable. For example, where an LLC is relatively new and has no credit history, a prospective landlord about to lease office space to the LLC will most likely require a personal guarantee from the LLC members before executing such a lease.

A limited partnership differs from other partnerships in that the partners are allowed to have limited liability based on the type of investment the partner contributes. This means that partners are only liable for the business’ debts up to a certain limit. A limited partnership venture is run by one or two partners known as general partners. Other contributors, known as limited or silent partners, provide capital but aren’t allowed to make managerial decisions. The general partners must carry the burden of all the business’s debts and obligations. If the company is sued or enters into bankruptcy, all debts and liabilities are the responsibility of the general partners.