What type of partnership provides personal liability protection similar to limited partners?

Limited liability partnerships (LLPs) are designed to provide personal liability protection for partners, similar to that of limited partners in a limited partnership. In an LLP, each partner's liability is limited to the amount they invest in the business, which helps protect their personal assets from business debts and liabilities. This structure allows partners to have an active role in the management without exposing themselves completely to the risks associated with the business.

In contrast, sole proprietorships and general partnerships do not offer this level of protection, as owners and general partners face unlimited personal liability for the debts and obligations of the business. Joint ventures, while collaborative, typically do not provide the same liability protections as an LLP since they are often temporary arrangements between parties and may default to the structures of partnerships or sole proprietorships. Thus, the structure of an LLP is distinct in balancing the capacity for active involvement in management with crucial personal liability protections.