general partnership

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Related to general partnership: limited partnership

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 ?
Before then, if the owners of relatively small multi-owner New Hampshire business start-ups wanted federal partnership taxation (which, for many such businesses, is the best possible federal taxation), they had to form them as general partnerships.
As a matter of law, the Agreement created a general partnership (defined above as the "General Partnership") between Zuckerberg and Ceglia.
As you might expect, setting up a limited partnership is not as easy as setting up a general partnership.
Cons: General partnerships also carry unlimited liability, which means all members of the partnership are collectively responsible for all of the company's acts and debts.
FRUPA specifically states that neither the rights nor the liens of creditors of a general partnership that converts to a limited partnership are impaired by the conversion.
However, a GP's creditors can force a sale of the general partnership interest, leading to dissolution and a liquidating distribution of the FLP's property to the creditor, when:
The general partnership bought the project in September 1983 for $550,000 ($14,865 per unit).
The defining feature of a general partnership is that the liability of the partners for the debts and obligations of the partnership is unlimited.
There are several ways to form a partnership, ranging from a general partnership to a corporation (see sidebar, "How to Legally Set Up").
Net proceeds will be used by the company to repay outstanding borrowings under its credit facilities, general partnership purposes, to fund its ongoing expansion capital programme, future acquisitions or for general partnership purposes.
95-37, addressed conversions of a general partnership into a limited partnership, and a domestic partnership into a domestic LLC (classified as a partnership for Federal tax purposes), respectively.

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