Incorporated Limited Partnership

Incorporated Limited Partnership

dear with tree antlers

An incorporated limited partnership is an incorporated entity which is separate from the partners, has perpetual succession, and can sue or be sued in its own name. 

An incorporated limited partnership has the following structure: 

 

  • One or more general partners (whose liability is unlimited) and one or more limited partners.
  • The general partners manage the business and have the power to enter binding agreements on behalf of the partnership.
  • The limited partners are passive investors; they must not manage the business and their liability for its debts and obligations is limited in proportion to the amount they have agreed to contribute to the partnership.
  • Be registered as, or must intend to register as a venture capital limited Partnership (VCLP), an early stage venture capital limited partnership (ESVCLP), an Australian venture capital fund of funds (AFOF); or venture capital management partnership (VCMP).

The tax incentives for Early Stage Venture Capital Limited Partnerships (ESVCLP) apply from 1st July 2016 and provides partners with a 10% non-refundable tax offset on capital invested during the year. The maximum fund size for ESVCLP’s is $200m and ESVCLPs are no longer required to divest a company when its value exceeds $250m.

Similar posts you may like

  • Six Tax Planning Options

    Accounting practices have six options available to them in relation to providing tax planning services. Some practices will choose one option (strategic pathway) and Read more

  • The ten best asset protection strategies

      Business Structures: Choosing the right business structure, such as a company or trust, can provide a level of separation between your personal assets Read more

  • The Glove Tax of 1785

    As Britain’s 1784 tax on hats was such a lucrative revenue raiser for the government, they decided to complement it with a glove tax. Read more

  • Change to a 4-day Work Week

    A 4-day workweek, where employees work the same number of hours but are condensed into four days instead of five, has gained popularity and Read more

"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"

- Bono: U2