What is a partnership?

General Partnership (GP)

General partnerships are sole proprietorships, except more than one person owns and operates the business. Unless you take a specific action, you and your partners are considered general partners by default. 

Doing business this way offers no personal asset liability protection. Additionally,  profits and losses pass through to regular income taxes.

Partnerships can also be organized as limited partnerships (LP) and limited liability partnerships (LLPs). Under an LP, one partner has unlimited liability while all others have personal asset protection. Under an LLP, all partners have limited liability protection. You must formally register in order to organize as an LP or LLP.

R&D Offer Quiz

Step 1 of 3

Answer to find out if you're eligible for R&D tax credits.

Do the activities performed relate to a new or improved business component’s function, performance, reliability, quality, or composition?(Required)
For Example: A mid-sized packaging company develops a slightly modified cardboard box design to improve its stacking strength (reliability) for warehouse storage, involving minor adjustments to the corrugation pattern to reduce collapse under standard weight loads.
Is your company trying to discover information to eliminate uncertainty concerning the capability or method for developing or improving a business component?(Required)
For Example: A furniture manufacturer investigates whether a cheaper wood adhesive can hold joints as effectively as the current one during assembly, testing bond strength to resolve doubts about its capability in standard production lines.
Do the activities performed constitute a process of experimentation?(Required)
For Example: An auto parts supplier runs a series of bench tests on different lubricant formulations to find one that reduces friction in engine bearings more effectively, systematically comparing wear rates over simulated operating cycles.