What are the differences between limited partner and general partner?

The major differences between limited partner and general partner are as follows −

Limited partner

• Liable to extend of investment made.

• Ownership is predefined in agreement.

• Minimal control partner.

• Profit/loss is shared according to investment proportion.

• It has complex structure.

• More paperwork is required.

• Less participation in day to day business activities.

General Partner

• It has unlimited lability.

• It has equal ownership right.

• More control as compared to limited partner.

• Profit/loss shared equally or according to agreement.

• It has simple structure.

• Less paperwork is required.

• Major participation in day to day business activities.