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Limited Partnership Agreements

oboloo Glossary

Limited Partnership Agreements

A Limited Partnership Agreement (LPA) is a type of business structure that provides both limited liability and tax advantages to its members. These agreements are often used in commercial settings, and involve two or more partners. The limited partners have limited liability in the business, meaning they can only lose up to their contribution amount in the business. Meanwhile, the general partner has unlimited liability: they are liable for all debts and obligations, even if it exceeds their investment amount. LPAs also have distinct tax advantages for each partner, as income generated from the partnership is taxed separately for each member. Ultimately, this type of agreement is an attractive option for those looking to engage in commercial activities, while limiting their financial risks.

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