A limited partnership is slightly different in that there is at least one general partner and one limited partner.  A limited partner’s liability is confined by the amount of his or her investment in the company, while the general partner has unlimited personal liability.

 Limited partnerships must be filed with the state and must also file independent tax returns separate from that of its owners. 

 A limited partnership is different from a general partnership because they are created by state statute, and offer separate taxation. 

 The limited partner can transfer his or her rights within the company, but the general partner or other limited partners have the right of first refusal.  Their role is usually to just provide operating capital to the business, while the general partner actually runs the operation.

 Limited partnerships are a good way for investors to invest in a company without risking anything more than their initial investment, allowing general partners the ability to raise capital without sharing full control of the business.