What is the difference between a “limited partnership”, a “limited liability partnership”, and a “limited liability company”?
A limited partnership is a partnership with two kinds of partners: general partners and limited partners. The general partners manage the business and are subject to unlimited liability; that is, the general partners are personally liable for the debts and obligations of the partnership. Generally, limited partners are not personally liable for the debts and obligations of the company. Filing a certificate of limited partnership with the Secretary of State creates limited partnerships. A limited liability partnership, also called a registered limited liability partnership (RLLP), is a kind of general partnership. RLLP’s are frequently businesses that provide professional services, such as law firms. An RLLP does not have “limited partners,” but a general partner is nevertheless NOT subject to personal liability for the malpractice of another partner unless he or she participates with or is responsible for supervising the partner committing the malpractice. A general partnership becomes
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