What is a limited partnership?

A limited partnership is a type of corporate law structure in California that combines the features of partnerships and corporations. Limited partnerships are made up of two types of partners—general partners, who have control and manage the business, and limited partners, who have no management rights, but have their investment in the business protected. General partners have total control of the business, which includes responsibilities such as making decisions on running the business, filing taxes, and signing contracts. As general partner, they also assume the full liability of the business. Limited partners are passive investors. They provide capital to the business, but have no control or decision-making rights. They cannot be held liable for any debts or obligations of the business, unless they breach their fiduciary duties as a partner. Limited partnerships are popular in California, as they provide limited liability, allowing a business to protect its partners from potential debt and other claims. These partnerships can provide a benefit when there is a large investment to be made, as limited partners can share the risk and the rewards of the business venture.

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What is a limited partnership?

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