silent partner

A silent partner, also known as a dormant partner or a limited partner, is an investor who becomes a member of a partnership by virtue of capital contribution, but plays an inactive role in the daily operation and management of the business. A silent partner is jointly and respectively liable for debts incurred by the partnership and has the same rights to share in the profits of the business. 

The silent partner’s name is not usually publicly disclosed.

[Last reviewed in July of 2025 by the Wex Definitions Team]

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