Partnerships and Limited Partnerships

Since the creation of the LLC, partnerships have become a less desirable business entity option.
In a partnership (also called a general partnership), the partners do not benefit from any liability protection—each partner is fully responsible for all of the entity’s debts and obligations. A business law attorney can create liability protection for a partnership through the use of additional entities, but this is a complicated solution.
A limited partnership is a specialized entity that provides liability protection for certain members—the “limited partners.” It looks similar to an LLC, but it has two important exceptions:
  • The limited partnership must include a general partner who assumes all liabilities.
  • The limited partners have limited rights related to governance and operations of the business.
Limited partnerships were used frequently in real estate before the introduction of LLCs, which offer the same protection more efficiently.

Contact business law attorney Steve Sneiderman to discuss your options and determine if a partnership is the right choice for you. If it is, he’ll handle all the legal steps required to set up your partnership and position your business for success.