In a limited partnership, who is liable to the creditors of the partnership?

In a limited partnership, the structure differentiates between general partners and limited partners in terms of liability. General partners have unlimited liability, meaning they are personally responsible for the debts and obligations of the partnership. If the partnership incurs debt or faces a lawsuit, creditors can pursue the general partners' personal assets, in addition to the assets of the partnership itself.

On the other hand, limited partners possess limited liability, which means that their financial responsibility is restricted to the amount they invested in the partnership. They do not partake in the day-to-day management of the business and thereby are shielded from personal liability for the partnership’s debts beyond their investment.

This distinction is central to the nature of limited partnerships, allowing individuals to invest without risking more than their original contribution. Therefore, it is indeed the general partners who are liable to the creditors of the partnership, making this understanding crucial for anyone involved in or studying partnership structures.