For the GP, a limited partnership is much easier to set up and operate than a corporation. Capital can be raised from LPs who essentially have no say in running the company. The profits pass through to the partners and are taxed on individual returns. In 2018, pass-through entities will receive a 20% tax deduction due to the recent tax reform. For LPs, a major advantage is that they get ownership in what they believe is a promising venture – but don’t have to take responsibility for operating the company!