A Limited Partnership is a rather unique form of business organization which can be a key tool in succession planning for the owners of a successful business. A Limited Partnership is created by filing a Certificate of Limited Partnership with the Secretary of State. A Limited Partnership has two types of partners — general partners and limited partners. The general partners have management control and authority over the activities of the entity, as well as unlimited liability. The limited partners have generally no right to participate in the management of the partnership but have limited liability.
When structured properly, older generations can retain control of the company they’ve built while still passing equity to future generations, often with favorable transfer tax consequences.
If you would like to explore ways in which you may be able to establish an effective succession plan for your business, contact our office today to set up an appointment with one of our experienced attorneys. Protecting your business interests is just as much a part of your estate plan as your personal assets.