Quick Definition

A Limited Partnership (LP) is a business structure where one or more general partners manage the business and are personally liable for its debts, while one or more limited partners contribute capital and have liability limited to their investment.

Examples

• 1A group of investors forming an LP to invest in real estate projects, with one acting as the general partner managing the operations.
• 2A family business where the parents are general partners managing the company and the children are limited partners contributing funds.
• 3An LP created to finance a film production, with a production company as the general partner and several investors as limited partners.

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