The differences between limited partners and general partners are as follows:

1. Limitation of liability:

Limited partner (LP): The liability of a limited partner is Subject to limitations, their liability is usually limited to the amount of their investment. This means that if the business runs into debt problems, the limited partners can only lose their investment and will not be personally liable for the debts of the business.

General Partner (GP): The liability of general partners is unlimited. They enjoy management rights in the partnership, but it also means that they have unlimited personal liability for the debts of the business. If the business is unable to pay its debts, the general partner may be required to use personal assets to cover the business's debts.

2. Management rights and participation:

Limited partners (LP): Limited partners usually have no participation rights in the management of the company. They are passive investors and are only responsible for Provide funding. If they become involved in the management of the business, they may lose their limited liability status.

General Partner (GP): General partners have management rights in the enterprise. They are responsible for daily operation and management, participate in enterprise decision-making, and assume more responsibilities and obligations.

3. Tax treatment:

Limited Partner (LP): Limited partners generally do not need to pay corporate income tax personally, and their income and losses will be passed directly to the personal tax return. , avoiding double taxation.

General Partner (GP): The general partner's profits from the company will be regarded as personal income and need to pay personal income tax, and also need to bear corporate income tax.

4. Exit mechanism:

Limited Partner (LP): Limited partners usually do not cause the dissolution of the company due to their withdrawal from the company. When a limited partner withdraws, the other partners can still continue the business.

General Partner (GP): The withdrawal of the general partner may lead to the dissolution of the business, because they are usually the main operators and decision-makers of the business.

5. Attracting investment:

Limited partners (LP): Due to the nature of limited liability, limited partners are usually more likely to attract outside investors because their risks are limited.

General Partner (GP): General partners are subject to higher risks and responsibilities and may limit the participation of outside investors.