General Partnership

A general partnership can be formed by two or more people doing business together. While it does not require an agreement to be in place, it is recommended that anyone operating as a general partnership have a partnership agreement. Such an agreement will control how the partnership is operated, how debts and assets are managed, decision-making, etc. Income, losses, and the like in a general partnership pass through in proportion to each partner’s ownership. There is no limited liability in a general partnership and the partners are subject to personal liability for all obligations of the partnership, regardless of their percentage of ownership.