TYPES OF PROTECTION AND THE IMPORTANCE OF A NEVADA BUSINESS LAWYER
Limited Partnerships (LP) (continued)
The limited partners in a LP cannot in any way, control or participate in the management of the partnership. As such, they are only liable up to sums invested by them and cannot withdraw their investments without the consent of the general partners. In this relationship both types of partners benefit from the firm’s profits, capital gains, and investment credits.
LPs can be formed for any type of business but they are very popular in movie-making, oil and gas exploration, real-estate development, and equipment-leasing industries. When a business begins to show taxable profits, limited partnerships generally dissolve and form into LLCs
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