Some Florida business owners have a simple need for their business, namely to finance it. However, traditional funding options, such as bank loans, may be too difficult to acquire or the business may not qualify for the financing. So an entrepreneur may decide to form a limited partnership as a way of financing a business. The key to a successful limited partnership is finding the right limited partner.
As Nerdwallet points out, other partnerships may include owners who want to control their businesses, but a limited partner is there to provide financing, not business management. The person to look for is someone who has no ambitions for controlling the business. If you bring on board someone with dreams of being a manager or someone in an important leadership position, that individual will be frustrated and may feel cheated upon discovering he or she has no real power over the company.
You can also choose to bring family members and friends on board as limited partners, though whether you believe you can professionally work with them is up to you. Still, a limited partnership may be better suited for your family than other business partnerships. The passivity of limited partners means they do not require experience with your type of business. Their primary duty is to financially invest in your business. And since limited partners are not liable for business actions, they have a very low risk of being sued, which can add further incentive for them to join.
An additional quality to look for in any good business partner, according to Forbes, is to find a partner who is ready to exit the company if the business goes south or if the partnership is no longer viable. An exit strategy can address everything from buyouts to possible non-compete clauses to future business ownership prospects. Defining how a limited partner can leave the company with no fuss can not only make the exit amicable, but can also help strengthen the working partnership, since the partners involved know their options and do not have to worry about nasty surprises.