Two Types of Partners
A limited partnership is a distinctly different business form than a general partnership. Limited partners have no voice in how the business is managed. The management of a limited partnership business may or may not have officers and a board of directors. The level of management structure depends on the size and purpose of the limited partnership
• Limited Partnership
A limited partnership must have at least one general partner and one limited partner. The general partners run the business of the partnership and have unlimited liability. A limited partner is not involved in business operations or management. Limited partners can be viewed as investors in the business, entitled to receive a proportionate share of the partnership profits.
• General Partnership
The general partner of a limited partnership business can be a single individual who runs the business or it may be a separate company that owns the general partnership interest in the company. If the general partner is structured as its own business, that business may be set up with company officers and a board of directors. If the general partner does have a board, it is possible for to have board members that are limited partners.
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