The limited partnership permits investor involvement with liability limited to the amount of the investment or the amount agreed to in the limited partnership agreement. The partnership must include at least one general partner who has general liability for the debts of the limited partnership. The general partner usually manages the business. The limited partner usually exercises no control over the business of the partnership but is merely an investor. Advantages General partner maintains control of the business.
Limited partner can invest with a limit on personal liability.
Easy way to secure capital. Business not taxed directly. Disadvantages More complex to organize. Limited partner has no control over the business. General partner has unlimited personal liability for the obligations of the business.