General partnerships are the oldest form of business organizations behind only the sole-proprietorship and the kingdom. The general partnership, however, is not a business entity that stands alone from its owners as far as legal liability is concerned. All partners in a general partnership share full responsibility jointly and severally for all of the obligations of the partnership.
For tax purposes on the other hand, the partnership is treated separately to the extent that it may file its own tax return. However, the partnership possesses pass-through taxation which allows the income, profits and losses to pass through directly to the general partner's personal tax returns. Because of their unlimited general liability, general partnerships are rarely used today.
To discuss whether this business form is suited to your situation, please contact The Alvarez Firm to schedule an appointment.