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A limited partnership is
one consisting of both General and Limited
Partners.
General Partner(s)
have management control, share the right
to use partnership property, share the profits of the
firm in predefined proportions, and have joint and
several liability for the debts of the partnership.
As in a general partnership, the General Partners have
actual authority as agents of the firm to bind all the
other partners in contracts with third parties that are
in the ordinary course of the partnership's business.
General Partner(s) collects fees and a
percentage of the capital gains and income.
Limited
Partners invest money but have limited liability,
are not involved in day-to-day management, and usually
cannot lose more than their capital contribution.
Usually Limited Partners receive income, capital
gains, and tax benefits. The extent of their income is
normally spelled out in a Partnership Agreement.
Limited Partners are like Shareholders in a
corporation.
Limited partnerships are
distinct from limited liability partnerships, in which
all partners have limited liability
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