General partnerships (GPs) are the standard type of this business entity and the default mode of ownership for more than one owner. With GPs, you’re not required to register the partnership with your respective state.
Limited partnerships (LP)s on the other hand are registered with the state. In an LP, you can have two different types of partners:
- General partners are responsible for operating, owning, and assuming liability for the business.
Limited partners or silent partners are those who typically act as investors without having a hand in the day-to-day running of the business.