Limited Partnership Agreements – An Introduction

Limited partnerships are a common business structure used in British Columbia, quite often in the area of real estate investment and development. They are attractive to investors due to their flexibility, ability to bring multiple entities (e.g. corporations, individuals, other partnerships) under one "roof" as limited partners, the fact that they are tax flow-through vehicles that permit individual tax planning, and the limited liability they afford limited partners.

One of the features that makes limited partnerships so attractive - the latitude that partners have to structure their relationship in a limited partnership agreement with relatively few restrictions imposed by the Partnership Act (British Columbia) (the "Act") – can also be a source of considerable risk for investors.