What is a General Partnership?

Answer:
A general partnership is a business arrangement

in which two or more people or corporations engage in business as partners. General partnerships can by implied by law, which means that a written agreement is not required to form general partnerships, and they do not have to be registered with the state.

However, it is in the best interest of the parties involved to draft and execute a partnership agreement. General partnerships do have to be licensed to conduct business in the municipality in which they are located.

Each general partner is jointly and severally liable for all actions and obligations of all partners, regardless of his or her ownership interest or level of participation in the day to day business operations.


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