Limited partners can lose their limited liability protection if they actively participate in management of the partnership.

Question

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Limited partners are typically shielded from personal liability for business debts and obligations, but if they become actively involved in managing the partnership, they can lose this protection and be held liable for partnership debts and obligations. This is why limited partners are often referred to as "silent partners" who contribute capital but have no say in how the business is run.

Limited Partners Can Lose Their Limited Liability Protection If They