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A Maryland LP may provide limited liability for some partners. There must be at least one general partner that acts as the controlling partner and one limited partner whose liability is normally limited to the amount of control or participation of the limited partner. General partners of an LP have unlimited personal liability for the LP's debts and obligation.
Maryland LLP structure can be described as follow:
- Limited Partnership
- Similar to General Partnership
- File Certificate of limited Partnership
- It is a partnership in which only one partner is required to be a general partner
- Pass through Entity for tax purposes
- Few states do not recognize LP's
- General Partner carries more liability, and in cases of financial misfortune, the GP becomes "the generous partner"
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