A type of investment partnership often used as an investment vehicle for investing in such assets as real estate. LPs differ from other partnerships in that the partners can have limited liability, meaning they are not liable for business debts that exceed their initial investment. Each must have at least one General Partner with unlimited liability. LPs are passthrough entities and generate Schedule K-1s to list income or losses on their
partners’ personal tax returns. Pertains to equity and real estate investments.

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