A limited partner is a shareholder whose liability for the company's debts is limited to the amount they contributed to the business.
Silent partners are another name for limited partners.
<h3>What is Limited Partnership?</h3>
Similar to a general partnership, a limited partnership (LP) must have at least one general partner (GP) and at least one limited partner, as opposed to the minimum requirement of two GPs for general partnerships.
Different from limited liability partnerships, which only have limited liability for each participant, are limited partnerships.
The GPs are, in most significant ways, in the same legal position as partners in a traditional firm: they have management control, share the right to use partnership property, divide the firm's profits into fixed shares, and have joint and several liabilities for the partnership's obligations.
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