General Partnership

A general partnership consists of two or more people sharing the ownership of a business (i.e., a jointly-owned business). The individuals are responsible for all business expenses and liabilities. Meaning, they can be held personally liable for the business. Each partner is able to share in the business’ profits as well. Taxes do not flow through a general partnership, which means that each partner is responsible for his/her personal tax liability and that of the general partnership. A general partnership costs less to form than a corporation.