What type of ownership structure is characterized by limited liability for its partners?

The correct answer is the Limited Liability Partnership. This structure is specifically designed to provide its partners with limited liability, which means that their personal assets are protected from the business's debts and liabilities. In a Limited Liability Partnership, each partner’s liability is limited to their investment in the business, safeguarding individual partners from being personally responsible for the debts incurred by the business or the negligence of other partners.

On the other hand, a Limited Liability Corporation, while also offering some form of limited liability, is a distinct legal entity that combines aspects of both corporate and partnership structures, often leading to confusion. A Sole Proprietorship does not provide any liability protection, meaning the owner is personally liable for all debts and obligations of the business. A General Partnership similarly does not offer limited liability; each partner shares personal liability for the debts and actions of the partnership. Therefore, the Limited Liability Partnership is the only structure among the choices that is expressly characterized by limited liability for its partners.