Limited Partnership

There are variety of options for creating a partnership – Limited Partnership, Limited Liability Partnership, Limited Liability Company and General Partnership. There are distinct differences that you, with your tax and/or legal advisor, should consider when deciding on which entity type you will need to accomplish your goals, such as structure, personal liability and reputation.

What is a Limited Partnership?

Limited Partnerships are composed of at least one general partner who:

  • Has Management control
  • Shares the right to use partnership property
  • Shares the profits of the firm in predefined proportions
  • Has joint and several liability for the debts of the partnership.

As well as limited partners who:

  • Have no management authority (unless they obligate themselves by a separate contract such as a guaranty)
  • Are not liable for the debts of the partnership

The limited partnership provides the limited partners a return on their investment (similar to a dividend), the nature and extent of which is usually defined in the partnership agreement.

How can UCS help me set up my Limited Partnership?

To form a limited partnership, the partners must register in the applicable state, typically through the office of the local Secretary of State. It is important to obtain all relevant business permits and licenses, which vary based on locality, state or industry.

UCS is with you every step of the way by providing the necessary forms to file with the Secretary of State as well as assist with drafting and submitting to the proper department. UCS also provides a registered agent office which is required in most states.

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