Limited Partnerships – Changes Afoot

The basic premise of a partnership is two or more people trading in business together to make a profit. It is a relatively simple concept that has existed for centuries.

What this looks like in practice, however, is ever-evolving to keep pace with the increasingly dynamic and changing world of farming. Limited Partnerships (LPs), whilst not by any means new, are a less well-known alternative to the traditional general partnership and to the more restrictive Limited Liability Partnership (LLP). LPs are becoming increasingly popular vehicles that enable the younger generation to join a farming business gradually and be part of the succession process. This may include non-farming children, who often have other jobs and private wealth, so they want to avoid the unlimited liability exposure that comes with being a general partner.