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Setting Up a Limited Partnership in Iowa
Article written by Illinois & Iowa Attorney Kevin O’Flaherty
In this article, we discuss limited partnerships, the requirements for setting up a limited partnership, the benefits and disadvantages to setting up a limited partnership in Iowa, and the process for setting up the limited partnership.
What is a Limited Partnership?
A limited partnership is a legal way to structure a business between two or more individuals or entities. Normally, in a limited partnership, there is a general partner and limited partners. The general partner is tasked with managing the business and overseeing operations while the limited partners have no direct management of the company.
As the name implies, the limited partners have limited liability in the business up to the amount of their investment, while the general partner has unlimited liability. However, the general partner will reap much greater rewards if the business is successful. An example of a limited partnership company in real estate would be an experienced property manager starting a company to flip houses with investors filling the roles of the limited partners. The property manager has the most to gain, but also the most to lose if the business fails.
