Double taxation of business earnings. Limited to only 35 owners. Limited liability for general partners. All partners have limited liability. All partners share in the control and management of the partnership.
Limited partners can participate fully in the management of the partnership.
General partners have unlimited liability. Partnership earnings are passed through to the partners. Pass through taxation exists because a partnership and its owners are one legal entity. Partnership earnings are not taxed directly to the partnership. Partnership earnings are taxed on each partner's personal income tax return.