Limited Partnerships
Limited partnerships also called LPs are formed by two or more people or legal entities, with at least one person acting as the general partner who has management authority and personal liability, and at least one person in the role of limited partner who is a passive investor with no management authority.
Limited Partnerships are managed and controlled by general partners; general partners have the authority to bind the partnership and the limited partners normally do not participate in managing the business. In a Limited Partnership, limited partners are not liable for the partnership’s debts beyond the funds they contribute to the partnership.
All partners including the general partner and limited partner must enter into Limited Partnership by either oral or written agreement. It is highly recommended that all Limited Partnerships have some sort of Written Agreement such as a Joint Venture Agreement or a Partnership Agreement which outlines the specifics of the Limited Partnership.
Let Legal Dox take all of the guesswork out of having to form your Limited Partnership.
For the cost of about $500.00, we can prepare a valid and legally binding Agreement for all of the Partners (both General and Limited) to sign that will keep the confusion and issues that cause problems between partners, out of a partnership.
Most States require that a Limited Partnership registers with their Secretary of State which general requires a fee. In California, the fee for filing your Limited Partnership is $75.00 ($70.00 for the filing fee and $5.00 to obtain a certified copy for your records).