General Partnership
Co-owners share management and unlimited liability; income passes through.
What is General Partnership?
Every general partner can bind the partnership and is personally liable for its debts. The partnership files an information return, but income and losses pass through to the partners. For an account, the partnership agreement shows who is authorized to trade.
General Partnership: a worked example
Two dentists practicing together as a general partnership are each liable for the practice's debts.
More terms in Clients, Strategy & Tax
Sole Proprietorship
A business owned by one person with no legal separation from the owner.
Limited Liability Company (LLC)
Limited liability for owners with pass-through taxation by default.
C Corporation
A separate taxpayer - profits taxed at the corporate level, then again as dividends.
S Corporation
A corporation that passes income through to shareholders, avoiding double tax.
Trust & Estate Accounts
Accounts run by a fiduciary - a trustee or an executor - under a governing document.
Foundations & Charities
Tax-exempt organizations investing for a mission, often in perpetuity.
Client Profile & Data Gathering
The financial and nonfinancial facts every recommendation must rest on.
Investment Objectives
Preservation of capital, income, growth, growth and income, speculation.