1. Unlimited Liability. Each general partner is legally and personally responsible for the debts, taxes, and actions of any other partner, even if that partner did not incur those debts or do anything wrong. Limited partners, however, risk only their original investment.
Today, many states allow partners to form a limited-liability part-nership (LLP) in which a partner in the business may have limited-liability protection from legal action resulting from the malpractice of the other partners.