Can limited partners become general partners?

Limited partners can indeed become general partners, but doing so comes with important consequences, particularly regarding personal liability. A limited partner in a limited partnership has limited liability, meaning they are not personally liable for the debts and obligations of the partnership beyond their investment. However, if a limited partner decides to take on the role of a general partner, they would assume personal liability for the partnership's debts, exposing their personal assets to potential claims against the business.

This transition from limited to general partner status changes the nature of their involvement and their protection under the law. Due to these implications of personal liability, it is crucial for limited partners to carefully consider the decision to become general partners, as it could significantly affect their financial risk.

While there may be provisions in the partnership agreement regarding the ability of limited partners to take on general partner responsibilities, the primary concern remains the increase in liability that accompanies such a change in status.