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General partnership

Question
What is a general partnership? 
Answer
A general partnership is any business with multiple owners where there has been no formation of any other type of business structure, such as a limited partnership, corporation, etc.

In general partnerships, all of the partners are jointly and severally liable for the debts of the business, including exposure of their personal assets to satisfy any partnership debts or liability obligations.

Partner can also take action to recoup a proportional share of the debt from other partner(s). 
Brain Trust contributor: Author of J.K. Lasser's Small Business Taxes 2007
Related Categories: Business Structure, Credit, Legal
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