A partnership is a flexible form of business. It is a formal business structure --- like a corporation --- but is free from nuances such as record-keeping requirements or the need for a board of directors. Limited partnerships have general partners and limited partners. The general partners are personally liable for the debts and obligations of the business. Limited partners are liable only to the extent of their investment in the business. A limited partnership may attract outside investors to the company because the investors only risk the money they put into the endeavor and are not personally liable for the business debts or obligations.
Instructions
1. Obtain a certificate of limited partnership form from your state's business corporation's division. Local secretary of state offices often have these forms available. Many state websites provide links to download these forms.
2. Choose a name for your limited partnership. State laws typically require the name to contain a suffix such as "Limited Partnership" or "L.P." You may need to conduct a name availability search to ensure that your business name is original. Check your state's business corporations division website for more information.
3. Fill out the certificate of partnership form. While forms differ from state to state, you typically must provide the name of the limited partnership in the first section, list the business address in the following section and provide the names and addresses of each general partner. The limited partners do not need to sign the form or list their names on the form.
4. File this form with your state's business corporation's division. Pay the required filing fee. Fees vary by state. In California, the cost was $70 in December 2010; in Maryland, the fee was $200 in December 2010.
