This post is based on a question about general partners that I answered on Quora a couple of weeks ago.
Q.: Why do general partnerships and limited partnerships both have a “general partner” position?
A.: General partners – in each type of partnership – have control over and manage the business. They are jointly and severally liable for the partnership’s obligations.
Limited partners are passive investors. They do not manage the business and cannot bind the partnership to agreements or undertakings. Their liability is limited to the amounts of their respective capital investments.
A general partnership has two or more general partners. A limited partnership has at least one general partner and at least one limited partner.
Dana H. Shultz, Attorney at Law +1 510-547-0545 dana [at] danashultz [dot] com
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