A general partnership requires that each partner in the company is held responsible for the debts and liabilities of the business. Each partner can also be held responsible for the actions of another partner that are taken on behalf of or in service of the business.
A Limited Partnership has both general and limited partners. General partners have unlimited liability for the business debts and are involved in the decision-making process of the business. The limited partners’ liability is restricted to the amount of their contribution to the capital of the partnership. Limited partners are not able to be involved in the decision making process of the business.