General partner

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search

General partner is a person who joins with at least one other person to form a business. A general partner has responsibility for the actions of the business, can legally bind the business and is personally liable for all the business's debts and obligations.[1]

Advantages and Disadvantages

A partnership can be a beneficial choice of business entity for legal, medical or creative professionals who want to expand their business reach. The disadvantages of being a general partner pertain to the issue of liability. General partners are jointly and severally liable for the partnership's legal obligations including contracts and personal injury suits.[2]

General partners are required in the formation of a:

References[edit]

  1. ^ "DEFINITION OF 'GENERAL PARTNER'". Investopedia. investopedia.com. Retrieved 27 November 2015.
  2. ^ Staff, Investopedia (2004-02-22). "General Partner". Investopedia. Retrieved 2018-10-05.