Given the other options available, in most circumstances, no, they are not. A general partnership offers no liability protection, as the general partners are each personally liable for the debts and liabilities of the partnership. A limited partnership offers some protection for limited partners, unless a limited partner participates in the conduct of the partnership business, and again, the general partners are given no liability protection whatsoever. Although Arizona is one of states that has allowed partnerships to become limited liability partnerships (LLP’s), which do give the general partners liability protection, it is not well known or understood and therefore, when liability protection is the goal, one should generally look to using either a corporation or a LLC.
