A general partnership is like a sole proprietorship just with more than one person. Joint ventures are general partnerships for the purpose of executing a one time business venture. For example: Susan and Joe sell BBQ out of a food truck on an ongoing basis (General Partners). Susan and Joe are teaming up to sell BBQ at a county fair for a one time business venture (Joint Venture). Both are treated the same so make sure to link these two together.

 

Key Highlights

• More than one owner.

• Unlimited personal liability for all partners.

• All income, losses, assets, and liabilities are shared among the owners.

 

Formation

• No filing requirements, just need to start operating the business.

• May need federal ID for operations like paying sales tax and filing payroll reports.

 

Operations

• Unless otherwise stated, partners share in business operations and management.

• Partners share income and losses.

 

Termination

• Either one of the partners die, or;

• The owners chooses not to continue with the business.

• May terminate whenever the owners want.

• Partnership agreement will spell the out terms of termination. If there is no such wording in the partnership agreement or the partnership agreement doesn’t exist then Revised Uniform Partnership Act (RUPA) will govern the termination.