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What is a limited partnership?

A Georgian business owner like yourself may be interested in many different types of partnerships. Fortunately for you, there are several types available for your perusal, so you can choose which one works best for the situation you’re in or the result that you’re aiming for.

One type of partnership is called a limited partnership, often abbreviated simply as LP. Incorporate.com states that these limited partners do not have a large say in the way your company is run, even if they are partnered with you. For example, they don’t control or even oversee daily operations, nor do they have a say in company votes.

In exchange for that, their liability is limited directly to the investment they have in the company. While a general partner can be held liable for the company on a whole, including its larger assets or debts, a limited partner only oversees their own share. This is considered one of the safer options both for you and for the limited partner, as there are less monetary risks involved. There are also some pretty strong financial gains to be made.

It is often considered an attractive option for many people venturing into short term projects such as construction or film. Long term projects or permanent business ventures would likely benefit more from general partnership, but it is possible to have both types simultaneously depending on the work that you need accomplished.

In the end, you must survey the business path you want to take and determine if you would benefit from the numerous advantages that a limited partnership can offer.

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Atlanta, GA 30350

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