• Being a limited partner puts a limitation on liability with respect both to potential lawsuits and money; the limited partner is only going to be liable for the amount of capital it contributed to the business; a business creditor cannot come after the limited partner’s personal assets.
• Easier to attract investors because limited partners have limited liability to the business debts.
• Profits and losses pass through the business to the partners, who are taxed on their own personal income tax returns.