A Review

A limited partnership is a type of business entity that brings together two types of partners. One partner provides capital, and the other partner handles the day-to-day operations. The limited partner only shares in profits from the company when they are distributed by the general partner. Limited partnerships can be set up to last for any length of time, but there are some benefits to limiting them to 10 years or less. We will explore this below!

Limited partnerships have become more popular with corporations as an alternative way for companies not listed on stock exchanges to raise money (as opposed secured bond offerings). In order for a corporation to establish a limited partnership, it must first register its name with state authorities so that it may also serve as general knowledge due to a wide variety of legal reasons that you will learn.

As with any type of partnership, the limited partnership does not have a single owner. Instead, it is made up of two types of partners: general and limited. The general partner has responsibility for managing the day-to-day operations. The limited partner only shares in profits from the company when they are distributed by the general partner. Limited partnerships can be set up to last for any length of time, but there are some benefits to limiting them to ten years or less . We will explore this below!

The combination of these three factors – high initial capital requirement; potential loss on investment because your funds may never come back out; and lack of liquidity makes long term equity investing in startups risky business that should really just be left untouched.