What are the liability protections provided by a Limited Partnership?
An important aspect of limited partnerships is that only general partners, not limited partners, have any say in the management of the partnership. This means that the general partners (usually the parents or older generation) entirely control it and are the only ones personally liable for the partnership’s business dealings.
Since the limited partners have no say in the partnership’s control or management, normally they are not personally liable for partnership liabilities except to the extent of their investment in the partnership. A Limited Partnership offers important asset protection planning opportunities for those seeking to protect their personal assets.