Master Limited Partnerships

A Master Limited Partnership (MLP) is a business structure that combines the tax benefits of a partnership with the liquidity of publicly traded securities. Typically, MLPs operate in industries like energy and natural resources, owning and managing assets such as pipelines or storage facilities. Investors buy units of the MLP on stock exchanges, earning income from the partnership’s profits—often through distributions—while the MLP itself files as a partnership for tax purposes. This setup allows investors to receive regular income with potential tax advantages, but it also involves specific risks and tax considerations unique to MLPs.