A general partnership

Question

Quizplus · Accepted Answer

A general partnership is not subject to double taxation like a corporation, but the partners do not enjoy limited liability protection like a limited liability company or corporation. The partnership is owned by the partners who share profits and losses. A general partnership is not subject to double taxation, as the partnership itself does not pay taxes. Instead, the partners report their share of the partnership income on their individual tax returns and pay taxes on that income. A general partnership also does not enjoy limited liability, as the partners are personally responsible for the debts and liabilities of the partnership. Finally, a general partnership is owned by the partners, who share equally in the profits and losses of the business.

A General Partnership