Limited Partnerships
A limited partnership (LP) is where two or more people own a business, but there are two classes of partners: general partners (who own and operate the business), and limited partners (who invest their money or property in the business, do not have the right to make decisions regarding the operation of the business, and do not have personal liability for business debts). The limited partnership was designed to allow limited partners to invest in the business, but not have the drawback of personal liability. However, personal liability still remains for the general partners.