Who Signs Limited Partnership Agreement
When forming a limited partnership, signing the Limited Partnership Agreement (LPA) is a crucial step in the process. This legally binding document outlines the rights and responsibilities of each partner, as well as the terms of the partnership itself.
So, who exactly should sign the LPA?
First and foremost, the general partner(s) must sign the LPA. The general partner(s) are responsible for managing the day-to-day operations of the partnership and making all major decisions. They are also personally liable for the partnership`s debts and obligations.
In addition, each limited partner should also sign the LPA. Limited partners are investors in the partnership and have limited liability, meaning they are only responsible for the partnership`s debts up to the amount of their investment. Limited partners generally do not have a say in the management of the partnership, but they do have the right to receive a share of the partnership`s profits and losses.
It is important to note that all partners should carefully review the LPA before signing it. This document will outline the specific terms of the partnership, including the length of the partnership, the division of profits and losses, and the process for adding or removing partners. It is important to make sure all partners are in agreement with these terms before signing the LPA.
In some cases, it may be advisable to have an attorney review the LPA before it is signed. This can help ensure that all legal requirements are met and that the document accurately reflects the partners` intentions.
In conclusion, when forming a limited partnership, the general partner(s) and all limited partners should sign the Limited Partnership Agreement. This legally binding document outlines the terms of the partnership and ensures that all partners understand their rights and responsibilities. Make sure to carefully review the LPA before signing it and consider seeking legal advice if necessary.