Limited partnership in a business carries many benefits for you. You might have a partner that wants to go in business with you but you do not want the hassle of dealing with the day to day running of the business. You can provide the financial backing while they take care of the everyday business of running it. This will make your partner a general partner and yourself as a limited partner. This is something that is done everyday in the finance and business world.
One of the best benefits provided to the limited partner is that they are not held liable for any business transaction gone wrong by law. Your personal property is protected, the general partners are the ones that will be held liable. You will get to share in the profits, most are split equally but there might be a stipulation that splits it up differently. Basically you provide the capitol and the general partners do the work.
Depending on how the contract or or the rules of being a limited partner will dictate how much business management you can have in the business. The vast majority get to vote in business meetings. All profits and losses the limited partners receive has to be reported to the Internal Revenue Service. The limited partnership stays ongoing unless there is no longer a general partner. The general partners of the business might change but this does not effect your limited partnership within the business.
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