The primary distinction between a general partnership and limited partnership pertains to liability.
In a general partnership, all GPs are considered “owners” of the partnership and are equally involved in decision-making processes. In a purely general partnership, the owners all take an active role in the deal.
One of the primary benefits to forming a general partnership is that it is easy to set up and has a low cost of operation. A general partnership can be formed between as few as two people. There is no state filing paperwork required. The partnership takes effect when the GPs begin business activities. Moreover, there are few proscribed duties of a general partnership. They are not required to hold annual meetings, issue investor reports, hold funds in escrow separately from their own personal assets, and more.
The downside to investing in a general partnership is that all owners are held equally liable if one partner is sued.