A limited partnership is a corporate form consisting of general and limited partners. The general partners have general management and oversight of the partnership and limited partners have limited liability and participation in the day to day affairs of the partnership. Limited partnerships are a common structure for raising capital for a business venture. The limited partner will make an investment into the partnership and will be entitled to greater profit sharing than the general partners. The limited partners may not participate in the management decisions of the partnership or they will lose their limited partnership status.
Limited partnerships are created by statute and thus must comply with applicable state law.