General Partnership Package - Kansas 2025

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A general partnership is a business made up of two or more partners, each obligated for the businesss debts, liabilities, and assets. Partners assume unlimited liability, potentially subjecting their personal assets to seizure if the partnership becomes insolvent.
However, the company taxes are actually paid by the partners rather than the company. This means that rather than your company getting taxed, individual partners will be taxed based on their portion of the company. The benefits of entering into a partnership include the lack of required business structure.
Generally, a partnership doesnt pay tax on its income but passes through any profits or losses to its partners. Partners must include partnership items on their tax returns. For a discussion of business expenses a partnership can deduct, see the 2022 version of Pub. 535, Business Expenses.
In general, an LLC offers better liability protection and more tax flexibility than a partnership.
LLCs offer several benefits over sole proprietorships and partnerships, such as limited liability and tax efficiency, but come with the drawbacks of potential self-employment taxes and complexities in management and ownership transfer.

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A limited partnership must be formed in writing between one or more general partners and one or more limited partners. General partner(s) generally manage(s) the partnership. An LP is required to register with the Secretary of State, maintain a resident agent/registered office, and file an annual report.

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