A limited partnership (LP) exists when two or more partners unite to jointly conduct a business in which one or more of the partners is liable only to the extent of the amount of money that partner has invested.
A limited partnership must have at least one general partner. … General partners are also subject to unlimited personal liability for the debts of the business. The general partners of a limited partnership are also jointly and severally liable for the debts of the business, just like partners in a general partnership.
Can you be a general partner and a limited partner?
The same person can be both a general partner and a limited partner, as long as there are at least two legal persons who are partners in the partnership. The general partner is responsible for the management of the affairs of the partnership, and he has unlimited personal liability for all debts and obligations.
Liability for Limited Partners. A limited partner contributes financially to the business in exchange for a portion of the partnership’s profits. A limited partner cannot incur obligations on behalf of the partnership or participate in daily operations or management.