silent partner

A silent partner, also known as a dormant partner, is an investor in a partnership who contributes capital but does not participate in the day-to-day management or operations of the business. Silent partners typically share in the profits of the partnership in accordance with the partnership agreement. 

A silent partner’s liability depends on the structure of the partnership. If the silent partner is a general partner, they may be personally liable for the debts and obligations of the partnership. If the silent partner is a limited partner, their liability is limited to the amount of their investment, provided they do not participate in management. Silent partners are not generally involved in public-facing aspects of the business, though their identity may be disclosed in legal or regulatory filings.

[Last reviewed in April of 2026 by the Wex Definitions Team] 

Keywords

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