Everything You Should Know about Master Limited Partnerships (MLPs) Before You Invest in Them

This Premium Report is Your Ultimate Guide to MLPs.


Master Limited Partnerships (MLPs) are good long-term investments for investors who want to defer their taxes and earn high, low-tax income now—and they make an especially powerful tax shelter when passed on to heirs.

But let’s start with what is a Master Limited Partnership (MLP)?

A Master Limited Partnership is a unique type of business allowed under the U.S. tax code. They’re similar to a “regular” limited partnership, with a few differences.

In addition to a limited partner or partners, who provide the MLP with capital and get a share of its cash flow in return, MLPs also have a General Partner (GP) that runs the business.

MLPs are also publicly traded, by definition. The limited partners are public shareholders—who are called unitholders. The unitholders are entitled to a share of the MLP’s cash flow, which is paid to them as distributions. From an investor’s point of view, these distributions are similar to common stock dividends: their amount is usually declared (announced) at the beginning of the fiscal year, and the distributions are then paid to the unitholders quarterly or monthly.

There are some differences though, and most of the differences are related to the taxes you pay on distributions.

That’s because the primary benefit of organizing a business as an MLP is that MLPs don’t pay corporate taxes on their revenue. Instead, the company’s cash flow is distributed, almost in its entirety, to its unitholders … who are then responsible for some taxes.

That makes MLPs a very efficient way to pass along the cash flow of an income-generating enterprise to public shareholders. And that’s what accounts for their large distributions and very high yields.

It does make your taxes a bit more complicated. But our Premium Report The Ultimate Guide to Choosing, Owning and Selling Master Limited Partnerships will show you how to deal with the taxes, along with everything else you need to know about MLPs.

And one more note on what makes an MLP: not just any business can be organized as an MLP. The tax code requires MLPs to derive about 90% of their revenue from natural resources, commodities, or real estate. In practice, many MLPs own energy transportation or processing facilities, like oil or gas pipelines, although there are also MLPs that own unique assets such as cemeteries. Any business in one of these industries that generates high regular cash flow, whether from rent, fees or simply selling goods, can make a good MLP.

Right now, with our Financial Freedom Premium Report The Ultimate Guide to Choosing, Owning and Selling Master Limited Partnerships, you get everything you need to know about MLPs, so you can decide if these types of investments are for you!

This Premium Report The Ultimate Guide to Choosing, Owning and Selling Master Limited Partnerships will deliver informative and practical advice about this type of investing strategy and includes:

With all the specific and practical advice in this Premium Report The Ultimate Guide to Choosing, Owning and Selling Master Limited Partnerships, you’ll get all your questions answered about how MLPs might be right for your investing strategy!

But this is just a fraction of what you’ll get with a FREE Financial Freedom Federation Bronze Club Membership. Your FREE membership entitles you to special content previews such as this one—previews of premium content that highlight key investing topics, drawn from Financial Freedom Magazine, Premium Reports, and Investor Briefings. You’ll get more previews of premium investing and lifestyle content, such as:

  • 21 Ways to a Richer Retirement
  • How to Secure a Lifetime of Income
  • 6 Ways to Pick Monster Growth Stocks
  • How to Be a Successful Investor for Life
  • 7 Ways to Build and Protect Your Wealth
  • Secrets to Finding the Market’s Best Bargains
  • How to Find the Best Undervalued Stocks
  • Secrets to Early-Stage Stock Profits
  • How to Squeeze an Extra 50% Profit Out of Every Trade
  • 10 Rules for Big Profits in Growth Stocks
  • Legal Marijuana Meets Vermont
  • Investing in Monopoly isn’t Just for Kids
  • Fasten Your Seatbelt (and Buy This Stock)
  • What Warren Buffett Knows That You Don’t—Keys to Buffett’s success
  • The Best Places to Retire
  • When to Start Taking Social Security

Content previews will be delivered directly to your email in-box three days a week—when you become a FREE Financial Freedom Federation Bronze Club Member right now!

And you’re also entitled to our FREE report, 5 Steps to Your Financial Freedom when you join today—learn how to get started on living a stress-free and enjoyable life and retirement. With your FREE copy of this report, you’ll learn:

  • How to determine your minimum investment level
  • How to figure out your core holdings
  • How to outline your financial objectives
  • How to always allocate smartly
  • All about the importance of diversifying

It really is all FREE—risk-free for you to sign up today, get your FREE report, and get started on the path to your own financial freedom!

Act now to claim your copy of this FREE report and become a FREE Financial Freedom Federation Bronze Club member today!

FREE Report:
5 Steps to Your Financial Freedom


Get your FREE copy of this special report, and put yourself on the path to financial independence and security! Check out how to get started toward financial freedom—and to achieve and maintain it, to enjoy life now and in retirement!

When you download this FREE report today, you’ll be instantly enrolled as a FREE member of the Financial Freedom Federation Bronze Club—get continued FREE access to this special report and regular previews of premium investing content, delivered to your email inbox three days a week.


Leave a Reply

Your email address will not be published. Required fields are marked *

Enter Your Log In Credentials

This setting should only be used on your home or work computer.

Need Assistance?

Call Financial Freedom Federation Customer Service at
(800) 777-2658

Send this to a friend