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I get asked very frequently what is a general partnership and this is the de facto entity for two or more people operating a business or owning a business together it doesnt have any set up requirements so you dont have to file anything with the state or the federal government if you are owning and operating a business with one or more other people you are a general partnership you have to actually have a partnership agreement but that can be as simple as an oral agreement deciding how the business is going to be run there is passed through taxation for general partnerships but theres also unfortunately jointly shared unlimited liability for the debts and liabilities of the partnership so while it is appropriate for many people many entrepreneurs are going to want to give serious consideration to creating a different type of entity in order to limit their personal liability
