LP (Limited Partnership)

A Limited Partnership (LP) is a business structure with two types of partners: general partners and limited partners. General partners manage the business and are personally responsible for its debts. Limited partners contribute capital but have limited involvement in daily operations, and their liability is restricted to their investment. LPs are commonly used in investment funds and real estate projects, allowing passive investors to participate without managing the business, while general partners handle decision-making and operations. This structure balances investment opportunity with liability protection for limited partners.