A limited partnership consists of at least one limited partner and at least one general partner. A limited partner is limited to the value of his investment in terms of liability and financial loss.
The general partner is unlimitedly liable in his day-to-day management control over the business. On the other hand, a limited partner has no say in the day-to-day management of the business entity and is limited in his right to receive distributions approved by the general partner.
A general partnership is one in which all partners are unlimitedly liable and have an equal say in the management of the business.
Limited liability companies (LLCs) are frequently used to own real property, operate a business, and so forth, and as their name implies, the owners have limited exposure to third-party claims.
However, recent Florida cases indicate that the owner of a single-member Florida LLC may be unlimitedly liable for his business’s financial obligations.
Business planning may be accomplished in all such entities by using a form of ownership between family members that provides for succession in the form of death or incapacity and provides for continuity of management at the retirement of majority stakeholders.