What do the letters “L.P.” stand for after a companys name?
L.P. is the acronym for “Limited Partnership.” While a sole proprietorship has only one owner, and a general partnership may consist of several owners, a limited partnership consists of two classes of owners. They are the limited partner and the general partner. The limited partner is simply someone who invests money in the partnership. The general partner may or may not be an investor, but serves as the business’s operating and financial manager. Limited partnerships have many of the liability limiting advantages of a corporation, but also include favorable tax advantages. State laws can vary in this area, however, so consult an attorney who specializes in organizational structure to determine the special circumstances of your own state.
