A limited partnership ("LP") is a specific type of business partnership that enables each partner to achieve legal protection against individual liability for the debts, losses, and violations related to the overall partnership. Limited partnership are different differs from other partnerships since it allows all partners to have limited liability. This limited liability depends on the individual partner’s investment contribution to the business. In addition, one or two partners known as general partners run a limited partnership venture.
In Rhode Island, the Rhode Island Uniform Limited Partnership Act governs the Rhode Island limited partnerships.
In Rhode Island, the requirements to form an LP are the following:
To form a Rhode Island Limited Partnership, the partners must file a document, and pay a filing fee, with the Secretary of State called “ Rhode Island Certificate of Limited Partnership”. The certificate must state the following:
Once the limited partnership is formed, the limited partnership's partnership agreement and RIULPA govern the operation and management of the limited partnership.
Rhode Island has a set of record keeping requirements that limited partnerships must follow:
There are several benefits of having a limited partnership in Arizona. These benefits are:
Limited partnerships in Rhode Island can have some disadvantages. Some of these are that limited partnerships have less of a say in the business than the general partners. If they begin to become active in the LP, the general partners see this as a risk. In addition, unlike the general partners in the business, limited partners income are not considered for tax purposes so they usually have to pay self-employment tax.
The law surrounding the requirements and protection of limited partnerships are complicated. The facts of each case and limited partnership can be unique. Limited Partnership laws can vary from state to state. It’s in your best interests to hire local Rhode Island business lawyer if you need help with the limited partnership laws in your area. Your attorney will be able to assist you with tasks such as filing, creating documents, and negotiating partnership agreements.
Last Modified: 06-13-2018 08:02 PM PDTLaw Library Disclaimer
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