The popularity of limited partnerships is easy to understand in today's business environment. In many jurisdictions, limited partnership structures are designed to be tax transparent. The personally liable partner is responsible for the management of the company and is the only partner with unlimited liability. The liability of each limited partner is limited to his contribution and any profit not drawn. Partnerships can be formed by verbal or written agreement, with written agreements always being preferable.

The most popular jurisdictions for forming limited partnerships are Scotland (under the Limited Partnership Act 1907) and Canada (under the Partnership Act of the country's respective provinces: Alberta, British Columbia, New Brunswick, Ontario and Saskatchewan).