limited partnership organizational chart

a limited liability partnership provides the owners of a small business partnership benefits that a general partnership does not. under the uniform partnership act, a general partnership does not operate as an entity that is separate and distinct from its owners. therefore, a court may hold any one general partner liable for the entire indebtedness of the partnership. if the owners of a general partnership do not want to subject themselves to personal liability for the debts of the partnership, they may form a limited partnership. as in a general partnership, a court may hold an lp’s general partner personally liable for the entire indebtedness of the business. the llp essentially operates as a general partnership, without the personal liability issues. the partners in a limited liability partnership generally do not hold personal liability for the debts of the partnership that arise from wrongful acts, negligence or other misconduct of the other partners.