What is a Limited Partnership (LP)?
A Limited Partnership, or LP, is a form of partnership that is similar to a general partnership. However, in a general partnership, there must be at least two general partners, also called GPs. In an LP, there must be at least one general partner and one limited partner.
Basically, in an LP, limited partners do not have authority over management or the day-to-day operations of the business. Therefore, they are not liable for any debts of the partnership, but they still receive profits from the company. Just like shareholders, they have limited liability as LPs. Instead, it is the GP who is personally responsible and liable. In addition, LPs have slightly different tax rules and regulations. And, if an LP does not stick to their role as a passive participant in the company, they can become liable.
Let San Diego Truck Insurance Help You File as an LP
Here at San Diego Truck Insurance, we have skilled agents that understand the intricate processes of filing for corporations. Therefore, we can walk you through the process and help you step-by-step to file your corporation as an LP.
In fact, we can even give you advice on which classification or filing would be best for your company! So, don’t stress about the paperwork and legal requirements for your commercial trucking business. Instead, let San Diego Truck Insurance take on the burden for you.