Which type of partnership provides limited liability for its partners?

A limited liability partnership (LLP) is structured in a way that protects each partner from personal liability for the debts and obligations of the partnership. This means that if the business incurs debt or faces legal issues, the personal assets of the partners are typically safeguarded. In an LLP, partners can actively manage the business while enjoying this liability protection, which is particularly beneficial for professionals like lawyers, accountants, and architects who want to work together without risking their personal assets.

In contrast, an ordinary partnership does not provide any liability protection, leaving each partner personally responsible for the debts of the business. A limited partnership does offer some liability protection to its limited partners, but general partners remain fully liable. A sole partnership, technically not a recognized form of partnership (as it refers to single ownership), does not offer any liability protection either. Thus, the limited liability partnership stands out as the correct answer due to its unique offering of limited liability for all partners involved.