Limited Partners
Accounting glossary · Understand, connect, apply
Limited partners are investors in a limited partnership whose liability for partnership obligations is generally limited under applicable law.
Example
A limited partner contributes 20,000 to a venture and receives a share of its profits under the partnership agreement.
Remember the difference
Limited partners differ from general partners. Management rights, guarantees and exceptions to liability protection depend on the agreement and law.
Updated 3 November 2026. Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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