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Limited Partnership (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. Institutional venture capital funds formed in the United States are typically organized as limited partnerships (or LLCs). Partnerships (including limited partnerships) are generally subject to pass-through taxation for US federal income tax purposes.


Last reviewed: October 25, 2022