LIMITED PARTNERSHIP - LP
A business organization with one or more partners (at least a general or full partner and a limited or nominal partner) that unite to manage a business together. The general partner assumes debts and obligations, as well as he or she manages and controls the company. On the other hand, the limited partner is only liable to the amount of money that he or she invested. He or she cannot partake in managing the company. Also, they do not get dividends but has direct access to the partnership’s cash flow of income and expenses. Both benefit from its capital gains, accelerated depreciation, and investment credits.
Also referred to as a limited liability partnership (LLP).
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