LP stands for Limited Partnership, a legal business structure combining full and limited liability roles. It includes at least one general partner—who manages the business and assumes full liability—and one limited partner—who provides funding and enjoys limited liability protection. LPs are popular in investment-based ventures such as real estate, hedge funds, and private equity. The model allows investors to contribute capital while limiting their exposure to business risks. This makes LPs an effective structure for entrepreneurs seeking operational control and investors seeking passive participation.

Source: accountingbyte.com/limited-liability-partnership