Master Limited Partnership (MLP)

A Master Limited Partnership (MLP) is a publicly traded business structure that combines the tax benefits of a limited partnership with the liquidity and access to capital of a publicly traded company. MLPs are typically formed by businesses engaged in energy, natural resources, real estate, or infrastructure-related activities, such as oil and gas production, pipelines, renewable energy projects, or real estate development. MLPs distribute the majority of their income to investors in the form of tax-advantaged distributions, known as “distributions,” and they are subject to specific tax regulations and reporting requirements.