Legal Definition of Limited partners: Owners of a partnership who share in the profits and losses of the business, but who are not allowed to participate in the management of the business, and whose liability risk is limited to their investment in the partnership | Discover the legal definition of limited partners and their role in a partnership. Learn how limited partners enjoy profit-sharing and limited liability, making them attractive for investors. Find out why limited partners bring valuable financial resources to the partnership. Make informed decisions when structuring your business partnerships