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Limited Partnership [LP] [LP]
A limited partnership is a partnership consisting of a general partner, who manages the business and has unlimited personal liability for the debts and obligations of the partnership, and one or more limited partners, who have limited liability but cannot participate in management.
Pass-Through Taxation
Pass-through (or “flow thru”) taxation exists when owners of applicable types of business entities pay taxes on the business profits in their personal tax return forms.
Delaware Franchise Tax
The Delaware Franchise Tax is the tax due to the state of Delaware for all LLCs and LPs organized or Corporations incorporated under Delaware law.