Limited partnerships require that one person or entity be the general partner. The general partner is responsible for debts and obligations of the limited partnership. Historically, limited partnerships have been used for real estate investments, and oil and gas investments.
Limited partners invest money into the limited partnership and are generally not liable for the debts and obligations of the limited partnership. However, if a limited partner begins to manage some aspect of the limited partnership business, the limited partner may become generally liable for the partnership’s debts.