Exposure to personal liability, however, is high. If you are an artist selling fine art out of your home, this is the entity for you. A general partnership is similar to a sole proprietorship, except that it is owned and operated by two or more people. The partners can be individuals or entities. A partnership can be controlled by a verbal or written agreement.
Administrative complexity varies, depending upon the nature of the partners.
If the partner is a person, exposure to personal liability is high. A limited partnership is one in which the limited partners are only liable for the debts and obligations of the partnership up to the amount of their investment in the partnership. So your personal liability is fairly low. But administration is more complex. To create a limited partnership, you must file paperwork with your local state.