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What Are General Partnerships?

April 26, 2017partnerships

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What Are General Partnerships?

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A partnership is formed when two or more persons agree to carry on a business together. General Partnerships are business partnerships featuring two or more partners in which each partner is liable for any debts taken on by the business (unlimited liability). Because the partners do not enjoy limited liability, all the partners’ assets can be involved in an insolvency case against the company. Because each of the partners has unlimited personal liability, a general partnership is considered the single most dangerous form for conducting one’s business. As an alternative you should consider an LLC. Read the FAQ below on LLCs. We strongly recommend that you set up a consultation with our firm if you are considering any type of partnership.