Martin Midstream Partners L.P. became a publicly traded master limited partnership on November 1, 2002. Our history actually dates back much further as a private company started by R.S. Martin in 1951.
Martin Midstream Partners L.P. is structured as a Master Limited Partnership, or MLP. An MLP is a publicly traded tax efficient entity that typically has a general partner(s) that manages the entity in addition to many limited partners (LPs). The LPs aide the MLP by providing investment capital to the partnership but typically are silent with respect to its management.
Martin Midstream Partners L.P. investors purchase "units" not shares. An MLP unit is a limited partnership interest traded on public stock exchanges. When an investor buys a unit in an MLP they effectively "join" the Company as an LP.
A corporation is a legal entity, separate from its shareholders and employees. The entity has liability for all obligations of the corporation. The shareholders contribute capital but have no liability to creditors, taxing authorities, or other parties that may have a claim against the corporation. A corporation is also treated as a separate entity for tax purposes and must pay taxes on its income. If there is any income left after corporate taxes, capital investment and other uses, it may be passed on to the shareholders in the form of dividends. Shareholders then pay taxes on the dividends they receive. Since the dividends passed on to shareholders have been taxed once at the corporate level and once at the shareholder level, it is said that corporate income is "double taxed."
An MLP is not considered a separate entity but rather an aggregation of all of its partners. For tax purposes, a partnership is treated as a "pass through" entity, meaning that there is no income taxation at the partnership level. The partnership's income is treated as having been earned by all of the partners and is therefore allocated among all the partners in proportion to their ownership interests in the partnership. All other items that figure into the income calculation, such as gains and losses, depreciation, etc., are also allocated to the partners. Each partner is then responsible for paying tax on his or her share of the income. Thus, partnership income is said to be "single taxed."
After being approved by the Board of Directors, Martin Midstream Partners L.P. typically pays its cash distribution to unitholders on or about February 4th, May 5th, August 14th and November 4th annually.
Martin Midstream Partners L.P. encourages unit holders to contact the partnership directly with any questions or concerns. The simplest way is either by phone (877) 256-6644 or via e-mail: firstname.lastname@example.org. The partnership is prohibited from providing tax advice to unit holders.
Unlike corporations that pay dividends and supply tax payers a Form 1099, your investment in Martin Midstream Partners L.P. represents a percentage of our limited partnership. Thus, unit holders will receive a Schedule K-1 from Martin. Our annual mailing of K-1s typically occurs the first week of March.