Which type of partners in a Limited Partnership have limited liability?

In a Limited Partnership, limited partners enjoy limited liability, which means their financial responsibility for the debts and obligations of the partnership is restricted to the amount they have invested in the partnership. This protection allows them to invest without risking more than their initial contribution, thereby encouraging investment while safeguarding personal assets.

In contrast, general partners bear unlimited liability, meaning they are personally responsible for the full extent of the partnership's debts. This structure is fundamental to the operation of limited partnerships, allowing general partners to manage the business while protecting limited partners from undue risk. Therefore, the distinction in liability is crucial for understanding the roles and responsibilities of the different types of partners within a limited partnership.