A Master Limited Partnership (MLP) is a business structure that combines the tax benefits of a partnership with the liquidity of a public company. This unincorporated business entity is designed to generate steady income streams for its investors, known as limited partners, while being managed by a general partner.
Material Participation refers to the level of involvement by a taxpayer in the operations of a business activity on a regular, continuous, and substantial basis. This term is crucial in distinguishing between passive and active income for tax purposes.
A partnership consisting of one or more Limited (Special) Partners and one or more General Partners that is structured to find, extract, and market commercial quantities of oil and natural gas.
An association of two or more people (partners) formed for the purpose of carrying on a business. Partnerships vary in legal structure and liability among partners and are specifically governed by laws and agreements.
Personal liability refers to the legal obligation that exposes an individual's personal assets to potential claims. Corporate stockholders and limited partners generally avoid personal liability, while general partners incur personal liability.
