General Partnership

A General Partnership is formed when two or more people go into business together.  The general partners share in the profits and losses of the business.   Just like a sole proprietorship, there is no limitation of liability for the partners.  The personal assets of the general partners can be used to satisfy liabilities of the partnership.  Also, just like a sole proprietorship, a general partnership will not be responsible for certain state taxes and fees.   This business structure trades liability protection for a somewhat easier to manage business structure with lower state related fees and taxes.  This is a very general description of the pros and cons of choosing a general partnership as your business structure.  There might be other reasons to chose a general partnership not discussed on this webpage.  Please contact us for more information.

This information is provided to you so that you might understand the basics of the most common business structures available in Tennessee.  The choice of a business structure is affected by many variables.  The information provided on this webpage is not intended to operate as an exclusive source of information.  Please contact us for assistance in determining what structure might work best in your particular case.

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