A partnership is an association or relationship between two or more individuals, corporations, trusts, or partnerships that join together to carry on a trade or business. Each partner contributes money, labour, property, or skills to the partnership. In return, each partner is entitled to a share of the profits or losses of the business. The business profits (or losses) are usually divided among the partners based on the partnership agreement.
In a general partnership, each partner is fully personally liable for the debts, contractual obligations, and torts resulting from the partnership’s operation.
Attributes of General Partnership
- Unlimited personal liability
- Easy tax structure
- No Name protection
- Multiple owners
- Ownership easily transferable