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New Investor's Guide to Limited Partnerships

What Limited Partnerships Are and Why They Matter to Your Investments


As a new investor, you may not realize the difference between investing in limited partnerships compared to buying shares of stock. The tax consequences, as well as advantages and drawbacks, are significant. From buying limited partnership units through a stock exchange and your brokerage account to forming one so you can invest with family and friends by pooling money, this basic overview of limited partnerships was designed to help answer your most pressing questions and point you in the right direction to learn more when you meet with a qualified adviser.

1. Using a Family Limited Partnership to Pool Your Investments

Family Limited Partnerships

Family members often want to invest together by pooling their money.  One of the most popular ways to achieve this is to form a family limited partnership.  This special type of investing vehicle provides tax advantages and a host of other benefits ...

2. How a Family Limited Partnership Can Lower Gift Taxes and Estate Taxes

Limited Partnership Estate Taxes and Gift Taxes

A great technique for lowering estate taxes and gift taxes is to form a limited partnership, consolidate your assets in it, and then give part of the partnership away to your heirs each year.  Take a few seconds to understand how this fantastic strategy can work ...

3. How to Form a Limited Partnership

Form a Limited Partnership

Starting a limited partnership is much easier than you may think!  This brief overview explains two of the most popular ways to form a limited partnership in the United States.

4. Top 6 Reasons to Form a Limited Partnership

Top Reasons to Form a Limited Partnership

There are six major benefits to investing through a limited partnership.  By understanding what they are, you can better take advantage of this excellent investment structure.

5. Limited Liability Limited Partnerships - A New Type of Investment Vehicle

Limited Liability Limited Partnerships

One of the big drawbacks of using a limited partnership is that the person managing the investments, the general partner, has unlimited liability.  That means if things go bad, he or she is on the hook and could have all of their personal assets on the line.  Half of the states have created a special type of investment vehicle to avoid this problem known as a limited liability limited partnership. 

6. Investing in Master Limited Partnerships

Master Limited Partnerships

Did you know that it is possible you have invested in limited partnership units and not shares of stock without even knowing it?  The tax consequences for such a mistake could be huge.  Find out just what is at stake ...

7. What Is a Hedge Fund?

Hedge funds are often structured as limited partnerships.

Almost all hedge funds and private equity funds are structured as limited partnerships.  If you have ever wanted to understand what a hedge fund is and how they work, this brief overiew was designed for you!

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