Limited Partnership info

A limited partnership is a special type of partnership which has at least one
general partner and at least one limited partner.

General partners are responsible for all debts and legal claims against the
partnership just like in a general partnership. Limited partners, however, are
only responsible to the partnership up to the amount they invested in the
partnership. This provides a liability shield to the limited partner. Claimants and
creditors of the Limited Partnership cannot reach through to the personal
assets of the limited partner. They can reach the personal assets of the general
partner. For that reason, some limited partnerships will have a corporation act
as the general partner.

In exchange for limited liability, limited partners trade-off their right to
participate in the management of the partnership business. If they participate in
the management contrary to their limited partner status, then, in an action
brought by a third party against the limited partnership, the courts will “re-label”
you as a general partner with all the personal liability that attaches to general
partners.

All income from the business is directly taxable to the partners.

YES. This business form requires registration with the State for its creation.