ANNUAL FEES FROM £147.00
This limited partnership formation in Delaware package is for customers, who are requiring register a partnership in the USA with a prestige legal address in Wilmington & registered agent for one year.
The following items are included into this Delaware limited partnership registration offer:
ANNUAL FEES FROM £447.00
This limited partnership registration in Delaware package is for customers, who are requiring registering a partnership with the registered agent & registered address in Delaware with the nominee limited partner.
This limited partnership incorporation offer includes everything in the first option, together with the advantages of:
ANNUAL FEES FROM £887.00
This limited partnership incorporation in Delaware package is for customers, who are requiring registering a partnership with the registered agent & address in Delaware with the nominee general and limited partners.
This limited partnership start-up offer includes everything in the second option, together with the advantages of:
ANNUAL FEES FROM £887.00
This is our most comprehensive limited partnership establishment in Delaware package with all registration documents verified by a notary public & certified by the Apostille stamp.
This limited partnership incorporation in Delaware offer includes everything in the third LP formation option, plus:
Limited partnership registration in USA: benefits of using Coddan Ltd as your limited partnership registration agent in Delaware: new limited partnerships are being formed all the time, and United States is currently booming with business start-ups. If you are interested in forming a limited partnership in America soon, Coddan Ltd can help. Many people assume that setting up a limited partnership in the State of Delaware is just the same as limited partnership incorporation is in other States, when really it is anything but - forming a limited partnership in Delaware can actually be much more advantageous than registering a limited partnership elsewhere in the United States of America.
Delaware limited partnership formation are different to limited partnerships incorporation inother States, and they offer unique benefits of their own. A registered American limited partnership can hold assets in its own name, as well as owning assets, entering into contracts, borrowing money and owning property. Limited partnerships incorporated in Delaware are also taxed as though they do not have separate legal personalities, which means they are much more tax transparent than limited partnerships in other countries. Limited partnership registration in Delaware offer the best of both worlds for those who form them.
Register a limited partnership in Delaware: we're experts in limited partnership formation in America and as one of our clients you will benefit from a range of limited partnership registration in USA advantages. We work quickly and efficiently to establish your American limited partnership as soon as possible, and we can set up limited liability partnerships in Scotland in just a few hours or days, and if you need, we can provide nominee partners. We can assist you in running your American limited partnership in a number of ways, though it is important to remember that we are not here to run your business for you; we cannot make binding decisions for the businesses. If you are looking to register a limited partnership in Delaware, Coddan Ltd can help you. We offer a friendly and approachable American limited partnership incorporation service tailored to your needs; you won't regret working with Coddan. Don't hesitate - get in touch with us today by phone or e-mail, if you have any questions about how to establish a limited partnership in the State of Delaware, or about the limited partnership formation procedure in United States of America.
Establish a limited partnership in Delaware with Coddan: setting up a limited partnership in America is different from other countries, and you need expertise to ensure it is done properly. That is why the team of limited partnership registration consultants at Coddan are the best choice when considering establishing this type of partnership in USA. We will provide initial advice and guide you through the entire process. We have a range of exceptional services for our clients, including providing an official registered address in Delaware, which can be invaluable for those without a presence in U.S.A. or who are foreigners. We also provide ongoing services such as bookkeeping. Talk to our expert consultants today: + 44 (0) 207.935.5171 or +44 (0) 330.808.0089.
Register a limited partnership in Scotland for UK and overseas customers: Coddan offer registration of limited partnerships in Delaware within 24 hours, with the option of a business bank account in EU and a number of unique advantages to both UK and overseas customers. Limited partnerships in the United States still operate according to the Limited Partnership Act, but there are differences between the Delaware, New York and Florida incorporation systems with regard to how this is implemented. Choosing to register a limited partnership in Delaware, or a American LP with Coddan, offers substantial benefits in comparison to partnerships elsewhere in the USA.
Establish a Delaware LP online: limited partnerships across the USA are based on the distinction between limited partners, who have a funding role and bear only limited liability should the partnership default on its debts, and general partners, who have a far more operational role, increased responsibilities and full liabilities in case of default. Coddan is an industry leader in the provision of these arrangements and, by choosing to register an LP in Delaware, Scotland, UK and overseas customers can avail of a unique legal status that allows the partnership to act as a separate legal personality.
Create a limited partnership in Delaware with us: this gives the partnership the options of holding property, taking other entities to court or being taken to court, taking out loans and so forth. Coddan has expertise in advising clients on how best to structure or restructure the organisation, especially for tax purposes. We can also offer advice on cross-border tax issues, the minimising of income tax and capital gains tax, as well as profit extraction alternatives. Combined with the flexibility of being a separate legal entity, an American legal partnership has the additional advantage of allowing partners to nevertheless be taxed as individuals. Again, Coddan, as your American limited partnership formation agent, can offer advice on how best to manage this crossover.
Form a limited partnership in Delaware with the registered agent: the registration of a limited partnership used to be a laborious process, but Coddan has developed a paperless registration process that can incorporate a partnership in Delaware in less than 24 hours, we can help our UK and overseas customers to operate, conduct business and manage their tax affairs in the most tax efficient ways possible.
Setting-up a limited partnership in America: setting up a limited partnership in USA can be hugely beneficial for your business. This because, unlike in other countries, including the England and Wales, they can be separate legal entities, allowing them to enter contracts, purchase property and begin court proceedings. Tax transparency is also an advantage. With an American limited partnership, only respective partners are assessed for taxation, with the partnership itself paying nothing.
If you'd like to understand more about limited partnerships north of the border, then give Coddan Ltd a call. Our team can talk you through the registration process and help you to take your partnership to the next level. We also have a range of Delaware LP post-formation packages to help you keep abreast of regulatory requirements once you're up and running.
While there are a number of companies that offer limited partnership incorporation services for businesses that wish to be based in Delaware, Coddan Ltd is proud to offer a team of experienced legal experts that cover the entire range of services that are linked to this activity. If you need assistance with any of the financial and legal processes that are vital for a limited partnership to remain in good standing, we can provide everything from key business insights to help and assistance with the drafting and submission of these documents – this all begins with the official formation of the Delaware limited partnership itself.
If you are looking to get a limited partnership in U.S.A. set up as quickly as possible, the team at Coddan Ltd has the experience that is necessary to get everything up and running as quickly as possible - this can even be carried out on a "same day incorporation" basis if it is required. In general, a minimum of two named individuals is required to form a limited partnership in the State of Delaware, and we can arrange for the provision of a nominee partners (nominee directors) if necessary - this facility can be used if it is desirable to maintain a certain level of anonymity.
In order to make the limited partnership a valid and legal arrangement, a number of documents need to be submitted to the Secretary of State, and Coddan Ltd can ensure that this is carried out in a timely manner. By using our many years of experience in dealing with Secretaries of States, we can keep returned documentation to an absolute minimum, leaving you free to concentrate on the business activities that really matter to your Scottish limited partnership. Inland Revenue is another government organisation that will require documentation to be submitted for tax reasons, and we apply the same levels of professionalism to ensure that you do not incur unnecessary penalties that are applied to limited partnerships with insufficient paperwork.
Which business structure is right for you? What about an LP (limited partnership)? LPs have far more complex formation requirements than a regular partnership. A LP requires at least one general partner, who is fully responsible for partnership obligations and normal business operations, and at least one limited partner, often an investor, who is not involved in everyday operations and is shielded from liability for partnership obligations beyond the amount of their investment. Like a regular partnership, LPs do not pay tax, but must file a return for informational purposes. LP partners report their share of profits and losses on their personal income tax returns.
Definition of a limited partnership: choosing the entity that best suits your business and personal needs is an important decision and should not be taken lightly. Legal and tax advantages as well as disadvantages exist for each entity. It is strongly suggested that new business owners consult with both a tax accountant and an attorney to aid in making a proper decisions.
A limited partnership (LP) consists of two or more persons, with at least one general partner and one limited partner. While a general partner in an LP has unlimited personal liability, a limited partner's liability is limited to the amount of his or her investment in the company. LP's are creatures of statute since they must file with the state to form them. Because of the limited liability of limited partnerships, they often are used as vehicles for raising capital.
The limited partnership is a separate entity and files taxes as a separate entity. The statute that provided for the formation of limited partnerships was the Uniform Limited Partnership Act (ULPA), which dates back to 1916. In 1976, ULPA was revised into the Revised Uniform Limited Partnership Act (RULPA), which was amended in 1985 to address the issue of limited partners' taking control. RULPA states that a limited partner shall not be liable as a general partner unless he or she takes control of the business. However, a limited partner is not considered to control the business if he or she is a member of the board of directors.
In order to form a limited partnership, 1 or more persons (but not less than all of the general partners) must execute a certificate of limited partnership. The certificate of limited partnership shall be filed in the Office of the Secretary of State and set forth: the name of the limited partnership; the address of the registered office and the name and address of the registered agent for service of process required to be maintained by § 17-104 of this title; the name and the business, residence or mailing address of each general partner; and any other matters the partners determine to include therein.
A limited partnership is formed at the time of the filing of the initial certificate of limited partnership in the Office of the Secretary of State or at any later date or time specified in the certificate of limited partnership if, in either case, there has been substantial compliance with the requirements of this section. A limited partnership formed under this chapter shall be a separate legal entity, the existence of which as a separate legal entity shall continue until cancellation of the limited partnership's certificate of limited partnership. If you have any questions please E-Mail or call us: 033 0808-0089 or +44 (0) 207.935.5171, fax: +44 207.504.3531.
Because the general partner is exposed to unlimited personal liability, LP's sometimes are set up so that the general partner is a corporation or an LLC.
Distinctions between limited partnerships and general partnerships: three distinctions between limited partnerships and general partnerships are: LP's are created by statute, not by intentions of the partners. Ability to override the partnership agreement. Tax treatment - a limited partnership normally has pass-through taxation, but must meet certain criteria to avoid being taxed as a corporation.
Limited partnerships taxation: as in a general partnership, income can be allocated each year among the partners in a way that minimizes taxes. If the limited partnership meets a minimum number of criteria related to limited liability, centralized management, duration, and transferability of ownership, it can enjoy the benefits of pass-through taxation; otherwise it will be taxed as a corporation.
Advantages of limited partnership: LPs provide a legal structure to the establishment of the business. From a capital investment standpoint, limited partners are shielded from the liability in that their liability is dependent upon the amount of capital invested. In addition, dividends distributed to all partners are reported on the partners' personal income tax return. There are no restrictions as to the amount of dividends that the general partners may receive from the business. General partners of a LP may be in the form of another person or company (!). As a separate legal entity, LP's may own property, sue, and be sued in LP's name.
Except as provided in the partnership agreement, a partner may lend money to, borrow money from, act as a surety, guarantor or endorser for, guarantee or assume 1 or more specific obligations of, provide collateral for and transact other business with, the limited partnership and, subject to other applicable law, has the same rights and obligations with respect thereto as a person who is not a partner.
A partnership agreement may provide for classes or groups of limited partners having such relative rights, powers and duties as the partnership agreement may provide, and may make provision for the future creation in the manner provided in the partnership agreement of additional classes or groups of limited partners having such relative rights, powers and duties as may from time to time be established, including rights, powers and duties senior to existing classes and groups of limited partners.
Forming a new limited partnership using our online limited partnership application form is a simple, complete and fast way to form a new partnership. Our online partnership formation services are designed for sole proprietors, do-it-yourself start-ups, small businesses, entrepreneurs, attorneys, accountants and others wishing to organize a limited partnership in California, in Delaware or in Florida, New York, Arkansas or in Oregon. We offer you a complete package of limited partnership organization services in USA similar to what you would obtain if you hired an attorney to incorporate your business, but at a fraction of the cost.
Our limited partnership formation in USA papers include everything you need to organize your new limited partnership properly. Our complete partnership package is personalized for your new business, unlike other do-it-yourself business incorporation papers that are not prepared specifically for your new partnership. Our American limited partnership incorporation services include the following:
We offer you four options to organize a limited partnership. In general, most people forming a new limited partnership find it advantageous to incorporate in the state in which the business is located. If the business is located in California, it is often best to incorporate your limited partnership in California. If the business is located in Florida, it is often best to incorporate in Florida, etc. You may order any of these limited partnership documents individually, or you may order all of them as part of a complete limited partnership incorporation package. Most of our non-US customers are choosing the State of Delaware to register a limited partnership there.
You may choose to join forces with one or more other people to own and operate your business, as a partnership, in legal terms. A partnership is a contractual relationship in which two or more persons carry on a business, sharing the potential for financial loss as well as the potential for earning a profit. While it's possible to begin a partnership without having any kind of formal, written agreement between the partners, doing so is a very bad idea.
In a partnership, the actions of one of the partners is legally binding on all the other partners in the business. If you don't have a written agreement which sets out the limits to what each partner can do, you could be faced with paying off debts incurred without your knowledge or approval by one of your partners. By having a written partnership agreement, you can set out the duties and rights of each of the partners.
With a written agreement, you can also provide for the way in which the partnership's profits will be split, how a partner can sell or transfer his interest in the partnership to another, and what will happen to the partnership's assets if the partners decide to end the business. A limited partnership is considered a separate entity by the Internal Revenue Service, and is required to file an annual tax return. But the partnership doesn't pay taxes; each partner reports his share of the partnership's profits on his individual tax return.
There are four types of partnerships:
General partnership: in which each of the partners has personal responsibility for all debts and liabilities of the business; and each partner is authorized to sign contracts and carry on all the business of the partnership, and each partner faces full legal liability for all its debts.
Limited partnership: which requires filing with the state but allows the partners who are not active in managing the business - the 'limited partners' - to be protected from personal liability for the partnership debts. At least one general partner is responsible for the management of the business activities of the partnership. If you are interesting to establish a limited partnership in Europe, we can assist you to register a limited partnership in Scotland.
The other partners, called limited partners, play no management role, but act merely as investors. As a result, the limited partners are not exposed to financial liability beyond the amount they have invested in the partnership.
Most states have adopted the Uniform Limited Partnership Act to regulate the way limited partnerships operate. For example, the Act limits the kind of investment a limited partner can make to cash or property; personal services cannot be considered as an investment in the partnership.
Limited liability partnership: - similar to limited liability company (LLC), limited liability partnerships (LLPs) are organized under state law and offer a degree of liability protection for individual partners. For Federal tax purposes, limited liability partnerships follow the same entity classification rules as limited liability company.
A limited liability partnership may elect to be treated as a corporation by filing Form 8832. If no election is made, the limited liability partnership is treated as a partnership and files Form 1065. The limited liability partnership is essentially a general partnership in form, with one important difference. Unlike a general partnership, in which individual partners are liable for the partnership's debts and obligations, an LLP provides each of its individual partners protection against personal liability for certain partnership liabilities.
A partnership is a contractual relationship in which two or more persons carry on a business, sharing the potential for financial loss as well as the potential for earning a profit. The problem with traditional partnerships is that mutual agency of a partnership can lead to joint and severable liability between the partners, and, that the unlimited liability of individual partners exposes their own wealth and personal assets to the same risks borne by the partnership's assets.
A limited liability partnership overcomes these problems operating as a separate legal entity able to conduct business and, as with a corporation with limited liability, shield the extent of any personal liability limited partners may have to third parties or inter se.
A limited partnership consists of two or more persons, with at least one general partner and one limited partner. While a general partner in a limited partnership has unlimited personal liability, a limited partner's liability is limited to the amount of his or her investment in the company. The general partner is fully responsible for partnership obligations and normal business operations, while the limited partner , who is often an investor, is not involved in everyday operations and is shielded from liability for partnership obligations beyond the amount of their investment. Like a regular partnership, limited partnerships do not pay tax, but must file a return for informational purposes. Limited partnership partners report their share of profits and losses on their personal income tax returns.
Most states have adopted the Uniform Limited Partnership Act to regulate the way limited partnerships operate. For example, the act limits the kind of investment a limited partner can make to cash or property; personal services cannot be considered as an investment in the partnership. Most states require limited partnerships to disclose the nature of the partnership to the public, such as by using the letters 'LTD' after the business name.
In addition to its use as a partnership in the more traditional sense, a limited partnership also has a wider - and perhaps more significant - use as a vehicle for joint ventures. The typical example is that of an American company and a Brazilian company coming together to exploit some know-how or process; the Brazilian company will manage the venture, the US company will simply be an investor; the Brazilian company does not want to be involved in a US vehicle and the American company does not want to be involved in a Brazilian vehicle. By operating through a fiscally transparent limited partnership - of which the Brazilian company may be the managing partner and the US company the limited partner - the US company pays its tax on its share without being answerable to the tax authorities in Brazil, and the Brazilian company is liable for its tax on its share, without interference from the IRS.
The limited partnership is a hybrid containing elements of both the partnership and the corporation. A limited partnership may be formed by parties who wish to invest in a business and, in return, to share in its profits, but who seek to limit their risk to the amount of their investment. The law provides such limited risk for the limited partner, but only so long as the limited partner plays no active role in the day-to-day management and operation of the business.
Forming a limited partnership requires that a document be filed with the proper state office. If the document is not filed or is improperly filed, the limited partner could be treated as a general partner and thus lose the protection of limited liability. In addition, the limited partner must refrain from becoming involved in the day-to-day operation of the partnership. Otherwise, the limited partner might be found to be actively participating in the business, and thereby held to be a general partner with unlimited personal liability.
Because the general partner is exposed to unlimited personal liability, limited partnership's are often established so that the general partner is a corporation or a limited liability company.
Formation process for a limited partnership: in addition to a partnership agreement, which explains the partner's rights and responsibilities, forming a limited partnership requires that a form be filed with the proper state office. The type of form varies from state to state. It should include the name of the limited partnership, the name and address of each general partner, a mailing address for the limited partnership, the latest date the limited partnership will dissolve, and any other matters the partners determine to include therein. If the document is not filed or is improperly filed, a limited partner could be treated as a general partner and thus lose the protection of limited liability.
The partners can invest any amount, subject to agreement of the other partners. Investment can be in the form of cash, tangible assets such as equipment, intangibles assets such as customer lists and goodwill, or even labour and services. Unlike a sole proprietorship, though, the value of the contributed labour and service is usually taxable income to the partner providing the service.
Income tax considerations: each partner pays tax on his or her share of the profits, whether distributed or retained within the partnership, and each is entitled to the same proportion of the partnership deductions and credits. The partnership must prepare an annual information return for the IRS known as Schedule K-1, Form 1065, which details each partner's share of income, credits and deductions, and which the IRS uses to check against the individual returns filed by the partners. If the partnership has losses, the partners may be able to deduct their share of the losses on their individual returns.
The tax rules are, however, more complex than can be described here; various factors, such as the involvement of the partner in the operation of the business, how much the partner invested, how much partnership income the partner has paid tax on, and how much cash the partnership has previously distributed to the partner, can become relevant for income tax purposes.
Typically, the general partners of a limited partnership conduct the day-to-day business and affairs of the limited partnership and are involved in the management of the limited partnership's business. A limited partner is generally a partner of the limited partnership who does not participate in the management of the business but who invests in the limited partnership in exchange for certain economic rights (including the right to participate in the profits of the business venture).
To the extent that a partner has duties (including fiduciary duties) to the partnership or another partner, any such partner acting under the partnership agreement will not be liable to the partnership or other partners for such a partner's good faith and adherence to the terms delimited in the partnership agreement. The partnership agreement may itself expand or restrict a partner's duties.
While a limited partner does not commonly participate in the management of the partnership, certain states, eg Delaware, allow limited partners to exercise broad democratic rights without being deemed to be participating in the control of the business and thereby sacrificing their protection from general liability. For example, limited partners may be independent contractors for, or transact business with, the limited partnership, be an agent or employee of the limited partnership, or be an officer, director or stockholder of a corporate general partner, without being deemed to participate in control of the business of the limited partnership.
In addition, limited partners of a Delaware limited partnership can consult with and advise general partners on business affairs, can lend money to the partnership, can call, request, attend, and participate at, meetings of the partners, can serve on committees of the limited partnership, can make determinations relating to investments of the partnership, and can take such other actions as may be specified in the partnership agreement without being deemed to be participating in the control of the business of the partnership.
Limited partnerships In Delaware: since the Delaware Revised Uniform Limited Partnership Act was enacted in January 1983, Delaware has increasingly become a popular jurisdiction of choice for the organisation of limited partnerships. The Partnership Act has been amended periodically since its enactment to keep it responsive to the needs of entrepreneurs and business leaders.
There are now almost 23,000 limited partnerships that have been formed in Delaware or have re-domiciled to Delaware. The advantages of a Delaware limited partnership include the freedom of contract principles that underlie the law of business organisations in Delaware, the ease of forming a limited partnership under the act, and the protections contained in the act relating to the liability of limited partners.
Under the laws of the state of Delaware, a limited partnership must have one or more general partners and one or more limited partners. A limited partnership may carry on any lawful business, purpose or activity, whether or not for profit, with the exception of the business of granting policies of insurance, or assuming insurance risks or banking.
Except as provided in the partnership agreement, a partner may lend money to, borrow money from, act as a surety, guarantor or endorser for, guarantee or assume one or more specific obligations of, provide collateral for, and transact other business with, the limited partnership and, subject to other applicable law, has the same rights and obligations with respect thereto as a person who is not a partner.
A partnership agreement may provide for classes or groups of limited partners having such relative rights, powers, and duties as the partnership agreement may provide, and may make provision for the future creation in the manner provided in the partnership agreement of additional classes or groups of limited partners having such relative rights, powers, and duties as may from time to time be established, including rights, powers, and duties senior to existing classes and groups of limited partners.
A partnership agreement may provide for the taking of an action, including the amendment of the partnership agreement, without the vote or approval of any limited partner or class or group of limited partners, including an action to create under the provisions of the partnership agreement a class or group of partnership interests that was not previously outstanding.
Register a limited partnership in Scotland with Coddan: if you are thinking of registering a limited partnership in USA, let the professionals at Coddan handle it for you. We are one of the leading companies and partnerships formation agents, and our team of expert consultants is on hand to offer you initial advice and guide you right through the entire process. It is essential that the people registering your limited partnership in Delaware are knowledgeable in Scottish partnership law because it is different.
Now is a good time to form a limited partnership in Delaware because the business sector is booming, and many people are starting up their own firms. One of the attractions of having a Delaware limited partnership is that they have benefits not available in other parts of the UK or EU. In Delaware, a limited partnership can own assets and property, and take out loans as well as enter into contracts.
There are also tax benefits to having a limited partnership in Delaware, as the entity is taxed in a transparent manner because it's not based on individual legal personalities. In this, it differs from similar partnership types in Florida or New York. At Coddan, we have many years of experience establishing companies and registering limited partnerships in Delaware, and are expertly versed in the law. We can help set up your limited partnership in Delaware with no hassle and in the shortest time possible, normally just a few days.
Our fees are low, and we have a number of options, starting from just £389.00 with no hidden charges. This Limited partnership start-up package is for customers who need to have an address in Delaware and registered agent, while other options include Coddan providing a limited partnership formation with a nominee service. Providing a registered office address in the State of Delaware - in this case it would be in Wilmington - has a number of significant advantages. It gives our clients a prestigious office address in a major city, and allows them to transact their business from a place other than where it is officially registered, thus helping to ensure privacy. It is also beneficial for foreign clients who are not based in USA.
We will register a limited partnership at the Companies Registrar in Delaware and under the Limited Partnership Act. The information that has required is the name of the partnership and its address (which can be supplied by us as one in Delaware) as well as each partner's full name and if they are either general or limited partners. We also need to know how long the partnership will last for and we require a description of each limited partner and a statement confirming that the partnership is limited. Also necessary are details of the contributions of each limited partner.
Limited partnerships, like general partnerships, are not ordinarily structured as taxable entities, but rather as conduits or "flow-through entities" for purposes of liability for and payment of income taxes. By comparison, corporate income is potentially subject to "double taxation", once at the corporate level (in other words, the corporate entity is itself taxed) and again at the stockholder level when dividend income is distributed to the stockholders.
In contrast, under U.S. federal tax law, a partnership itself is not subject to income tax, but rather the partners are taxed on their distributive shares of the partnership's taxable income. In addition, cash distributions by a partnership are tax free to the partners to the extent of their respective bases in their partnership interests, and excess distributions are normally taxed at capital-gains rates. By way of contrast, cash distributions by a corporation (other than an S corporation) are taxable to stockholders as ordinary income to the extent of the current and accumulated earnings and profits of the corporation, and excess distributions are considered a return of capital or capital gain.
In addition, in a partnership, special allocations of profits and losses may be made for tax purposes that are disproportionate to equity interests, so long as the special allocations have "substantial economic effect".
We have been asked to review limited partnerships in the United States. In particular, we are asked to assume that all the partners of the partnership are non-resident aliens as to the United States and that all of the income of the partnership arises outside of the United States. Given these assumptions, it is still unclear whether the partnership is engaged in business (for tax purposes) in the U.S. or whether its income is technically U.S. source income. As for the latter issue, it is clear that the intention is that the income of the partnership not be U.S. source in the technical sense.
Before going into the details of limited partnerships as narrowed by the assumptions, there are certain general matters relating to limited partnerships which it is essential for the reader to consider. First of all, the United States is a federal state. All partnership law is state law and potentially, each state may have different rules relating to limited partnerships. Not to worry, however, because state statutes relating to limited partnerships are based upon the Uniform Limited Partnership Act ("ULPA") of the National Conference of Commissioners on Uniform Laws, which is in effect with minor local variations in forty-nine (49) states of the United States and the District of Columbia.
Thus, although the author intends to restrict his remarks to Florida law what is said is likely to be applicable in all of the states and the District of Columbia and the U.S. Virgin Islands. It should be remembered, however, that the United States is in the throes of that tragic cliche, change. As of the date of this writing, a new form of entity, called a limited liability company, is rapidly absorbing the functions of a limited partnership as the vehicle of choice in the United States.
This is because, while the limited liability company may be taxable as a partnership (in more or less the same way as a limited partnership) it provides limited liability for all of its members without complications or a minimum of two entities. Where parties wish to have a partnership for federal income tax purposes with limited liability for all of the members, it is normal to establish a limited partnership and to vest the general partnership interest in a corporation.
Through this medium, one person can beneficially own an entire limited partnership. Thus, to attain universal limited liability in the partnership form, it is necessary to have a minimum of two entities with accompanying complication and cost. The limited liability company eliminates this necessity while retaining virtually the same infinite flexibility that is available with regard to partnerships.