A partnership is essentially an agreement between two or more persons or entities to carry on a business for a profit. While other differences exist, one large disadvantage to running a business as a partnership, is the unlimited personal liability of the partners.
Massachusetts Law also recognizes the existence of limited partnerships under G.L.c, Section 109. Limited partnerships share many of the advantages and disadvantages of general partnerships. However, the primary additional advantage of the limited partnership structure is the limitation on the liability of limited partners but the general partners are personally liable. Again, an attorney should be consulted in deciding which entity best suits your business plan.