LP or “Limited Partnership”
It is a partnership consisting of a minimum of two partners, with at least one general partner and one limited partner. A LP does not have a separate legal entity from the partners, i.e. it cannot sue or be sued or own property in its own name.
An individual or a corporation may be a general partner or a limited partner of the LP. A general partner is responsible for the actions of the LP and is liable for all debts and obligations of the LP.
A limited partner is not liable for debts and obligations of the LP beyond his agreed contribution, provided he does not take part in the management of the LP.
Is normally used for fund management activities where the general partner will be responsible for all the investment activities.