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General partners are the ones involved in the day to day operations of the company, and still share all the liability of all the general partner’s actions. Limited partners are essentially passive investors, they could be angel investors, venture capitalists, or friends and family members, who contribute funds and are paid back with profits, but they cannot participate in the any of management activities of the business.
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The partnership will go sour if you aren’t clear up front about what you are able to give. Ask yourself why someone would want to partner with you. Consider your expertise and your strengths. Also think about the amount of time you have to devote to the project. Are you good with follow through? What is your reputation in the marketplace? Both partners should have something to offer.
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