Limited partnership

General Definition:

A limited partnership is a form of business ownership. It involves two or more people, more specifically known as partners. At least one partner involved in the business will have unlimited liability. This general partner is personally and legally responsible for all debts incurred in the name of the partnership. The limited partner, on the other hand, has limited liability. That is, limited partners are only financially responsible up to the amount they have contributed to the business. Limited partners are not actively involved in the management structure of the business.