The basic characteristics of a general partnership include group ownership, personal liability, decentralized management and pass-through federal income taxation. Limited liability of owners for business matters is the primary benefit that is available under other business structures, but it is not characteristic of a general partnership.Continue Reading
A general partnership is a group of two or more persons who agree to work together for profit. The partners are personally responsible for all business transactions, and any individual partner has the authority to make decisions on behalf of the entire partnership unless that authority is expressly limited by the partners.
Unlike a corporation that must follow complicated management regulations, partners can manage the enterprise informally or under terms the partners agree upon themselves and formalize in a partnership agreement. General partnerships also benefit from special tax treatment under federal law. The business is not required to file a federal income tax return; instead, it passes profits and losses through to the partners who report the amounts on their personal federal income tax returns and pay taxes on the amounts at their individual tax rates.Learn more about Corporations
Paul Allen and Bill Gates co-founded Microsoft as a small partnership on April 4, 1975, and Bill Gates became the CEO. They registered the name "Microsoft" with the secretary of state of New Mexico on November 26, 1976.Full Answer >
Companies with LLC in their name are limited liability companies, a legal structure allowing the business owners some protection against liability, while getting the tax benefits of a partnership. Depending the state, an LLC can consist of one or more partners that can be individuals, corporations or other LLCs.Full Answer >
UGI Corporation, through its subsidiaries, is the sole general partner of AmeriGas Propane and owns 26 percent of the partnership. As of October 2015, AmeriGas Partners is a publicly traded master limited partnership that conducts its business principally through its subsidiary, AmeriGas Propane.Full Answer >
According to the Houston Chronicle, there is no minimum age requirement to join a limited partnership or start a sole proprietorship. However, most states require corporation owners and members of limited liability companies to be of legal age.Full Answer >