They are limited for a reason-limited partners do not exercise control over their shares. No matter how minute a general partner’s interest is, he or she retains control despite the fact that a limited partner may hold a higher percentage of limited shares. Unlike assets which are divided into equal shares, an FLP has two types of shareholders: 1) general partners, and, 2) limited partners.
Nelson Rockefeller famously said, “ The secret to success is to own nothing, but control everything.” This is the soul of the Family Limited Partnership.