Some Points to Consider When Forming a Limited Partnership

• Official documents must be filed with the appropriate state in order to form a limited partnership
  
• State filing fees must be paid
• There must be one or more general partners
• The general partner(s) make decisions and operate the business
• There must be one or more limited partners
• The limited partners (“silent partners”) do not take part in the operation of the business
• The general partner(s) are alone liable for the debts, obligations and liabilities of the partnership
• Limited partners are not liable for the debts, obligations and liabilities of the partnership
• Protection of limited the partners’ personal assets is one of the major advantages of a limited partnership
• Unlike corporations, limited partnerships are not required to hold and document meetings
• Raising additional capital is made easier due to the limited liability of limited partners
• There is less paperwork and limited partnerships are easier to manage than are corporations
• Limited partnerships are not themselves taxed so partners can enjoy pass through taxation as do other partnerships
• Losses can sometimes be used to shelter partners’ other income

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