What are the advantages of a limited partnership?

Or, learn more about Partnership Agreements. One of the biggest advantages for a limited partner in the Limited Partnership is the fact that he or she only faces limited liability. If the business goes bankrupt or is sued, the limited partner is only liable up to his investment in the business and the business's assets.

How does a limited partnership work?

Talk to a Business Law Attorney. What Is a Limited Partnership and How Does It Work? An LP is a business entity that consists of at least one general partner and one or more limited partners. Typically, the general partner is an experienced businessperson who provides both financial resources and daily management skills to the partnership.

What is a limited partnership (LP)?

A limited partnership (LP) is a business entity with at least one general partner (who has unlimited personal liability) and one limited partner (whose liability is limited to their investment in the company). The general partners are responsible for managing the business and making business decisions to achieve the stated business goals.