A master limited partnership (MLP) is an attractive option for both investors and companies wanting to maximize their earning potential. An MLP combines the tax benefits of a traditional private partnership with the liquidity of a publically traded stock. MLPs have two types of partners, general partners, who are actively engaged in day-to-day management of the MLP, and limited partners, who are investors.

The primary benefit of an MLP is that limited partners, who own the partnership's ownership interests, pay only limited taxes on their income from the partnership. The income is generally taxed only at the individual level, rather than at the corporate tax rate, since the net income is allocated to the limited partners as a distributive share. This can be especially advantageous for investors in high-tax states, as the dividend and capital gains taxes are limited.

In addition, MLPs offer investors a slow but steady stream of income. Distributions are generally paid to unitholders quarterly and are paid out of current or past earnings of the MLP. This can provide investors with a reliable and consistent stream of income, which can then be reinvested or used as needed.

Overall, MLPs are considered long-term, low-risk investments and can be beneficial to individual investors and companies alike. The tax advantages and consistent income stream, coupled with the liquidity of a publicly traded stock, make MLPs attractive to investors looking to maximize their returns. For companies, MLPs offer a valuable source of capital, as well as a structure that may be more attractive than selling stock shares to the public. With all MLPs, however, it is important to understand the associated fees and risks involved and to research the individual investment thoroughly.