Definition: A limited partnership is a type of partnership with both general partners and limited partners. It differs from a general partnership, which has only general partners, not limited partners. The limited partnership was a popular partner form in the 1970s and 1980s, before the advent of the limited liability company (LLC).
Some states permit a limited partnership or other partnership variation, in addition to the more general partnership form.
Common Misspellings: Don't confuse a limited partnership with a limited liability partnership or a limited liability company.
Examples:
A limited partnership was formed by Carl and Christine. Carl became a general partner, running the business and assuming liability for its operations. Christine became a limited partner; she invested in the partnership but she did not participate in day-to-day operations. Her liability was also limited.
