The MLP structure can mean the MLP essentially avoids paying taxes, which are then passed-through to their investors. Now, that tax pass-through may sound like a wash.

Some funds owe corporate income tax. Do their shareholders understand what’s going on?

A master limited partnership (MLP) combines the tax benefits of a partnership with the liquidity of a public company.

The MLP has a growth wave coming down the pipeline. Enterprise Products Partners (EPD -0.45%) is known for its nearly 7%-yielding distribution, but it's on the verge of a growth acceleration.

MLPs vs. MLP ETFs: Tax Nuances to Consider While directly owning individual MLPs or owning an MLP-focused ETF can provide tax-deferred income, there are other key differences to note.