If you are a limited partner, then your liabilities are limited to the amount of your investment. In other words you can never lose more than what you have put into the company. That is the reason for forming a limited partnership. On the other hand, if you are the general partner, who was operating the business, then as a general partner, you have unlimited liability for the business liabilities. In other words, general partners are fully answerable for all liabilities of a partnership. Limited partners are not. The answer to your question depends upon what your status is within the limited partnership. As a limited partner your liability is limited. As a general partner. It is not.
Answered on Jul 30th, 2013 at 2:11 PM