A Limited Partnership is a generally considered a joint venture between two or more individuals and or other business entities. It is a legal entity which is separate from it's owners and operators. Much like the Limited Liability Company (LLC), a Limited Partnership benefits from pass through taxation treatment.
A Limited Partnership consists of one or more General Partners and one or more Limited Partners.
The General Partner is the person or the company in charge of managing the day-to-day operations of the Limited Partnership. It is important to note that, although it is considered to be a separate entity, in the event of litigation, the General Partner has unlimited liability in the Limited Partnership.
The Limited Partner is a person or a company that is typically passively involved in the operations of the Limited Partnership. Limited Partners often appear as investors, or owners who provided certain resources necessary for the Partnership to come into existence, however, they do not necessarily play an active role in the management of the entity. In the event of litigation, the liability of the Limited Partner(s) is limited.