I’m trying to get an understanding of why someone would use one over the other. I have a SMLLC for my turnkey single family rentals. I’ve always read/heard/etc that LLCs are generally the preferred structure for rentals. I am single, not hands on with my properties.

A buddy of mine, married, just bought his first rental. He is planning to self-manage. He and his wife started a LLLP. He did it online, doesn't have an operating agreement, didn't meet with an attorney, but insists it's the way to go. He is listed as the general partner and his wife as the limited partner. The reasoning was that he wanted his wife's assets protected. I am confused as to why they wouldn't have just formed a multi-member LLC and both have limited liability versus the LLLP structure that seems to mandate one person to be listed as the general partner (who now has personal liability) and in my opinion appears to defeat the whole purpose of creating the entity in the first place.

What am I missing?