This type of organization differs in one significant way from a normal
partnership in that it allows for two types of partners. There are general
partners who are considered the owners and managers. Then there are limited
partners who are not involved in the day-to-day business and have only a
limited liability. This form of organization is often used when there are
individuals who want to invest money in a business, but don't want to run
it. These people become limited partners and, unlike the general partners, they
generally are not liable for more than their investment in the business.
A Limited Liability Partnership is similar to a Limited Partnership. Talk to
your attorney for more information about this type of organization.