general partnership

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General partnership

A partnership in which all participants are general partners

General Partnership

A business structure in which two or more persons share in the ownership and profits and losses of the business. In a general partnership, two or more partners, jointly and severally, share all profits, losses, management authority, and risk for the business. Importantly, all partners have unlimited liability, which means that they may lose more than they originally invested.

In most jurisdictions, partnerships are preferable to corporations because partnerships' profits are not taxed prior to distribution to the partners. In other words, there is no equivalent to a corporate tax on partnerships. On the other hand, partners have more legal and financial liability in case of liquidation than would shareholders and most management in a corporation. See also: Limited partnership, Limited liability partnership.

general partnership

A partnership in which each of the partners is liable for all of the firm's debts and the actions of one partner are binding on each of the other partners. Compare limited partnership.

general partnership

A partnership in which all partners are general partners. Contrast with limited partnership.

References in periodicals archive ?
What should you do -and what should the thousands of other owners of active New Hampshire general partnerships do--to protect yourself from personal liability for misconduct by your partners?
However, New Hampshire general partnership law had--and still has--many grave flaws.
Although some family business leaders seem to be reluctant to change their companies into general partnerships, the future generations, armed with knowledge and open-minded spirit, will engage courageously in such a process, Bahrain Chamber of Commerce and Industry chairman Dr Essam Fakhro told our sister paper Akhbar Al Khaleej.
MANAMA: A call has gone out to seriously consider converting Bahrain's family businesses into general partnership companies to face challenges and ensure continuity.
In addition, X has net income from a sole proprietorship and a distributive share of net ordinary income from a general partnership interest.
Pros: A general partnership is relatively free of government restrictions--forming one is as simple as buying a partnership certificate at your local business supply store.
Although LLPs are an improvement over general partnerships in terms of personal liability protection, they generally provide less personal liability protection than corporations or LLCs.
For example, individual ownership and general partnerships expose owners to personal liability.
Beyond their participation in the Discovery Fund II fund of funds, investors have the option of co-investing in select General Partnerships and later stage portfolio companies within individual funds.
Restructuring Corvette City from a general partnership to a limited partnership and exchanging Dick's general partner interest for a limited partner interest could accomplish the goal of limiting Dick's risk of loss to sums he invested in Corvette City.
You know yourself, and when you form a business organization with other people you hope you know them, but there are always surprises lurking that make members vulnerable in a general partnership.
Recent letter rulings defining a "tax shelter" are of particular interest to professional service general partnerships contemplating converting to LLC status, because tax shelters cannot use the cash method and a change to the accrual method, if required, would accelerate the recognition of taxable income.

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