General partnerships

A general partnership is a business structure where two or more people share ownership, responsibilities, profits, and liabilities equally or as agreed upon. Each partner actively participates in managing the business and is personally responsible for its debts and obligations. This means if the business owes money or faces legal issues, each partner's personal assets could be at risk. General partnerships are simple to establish and often used by small businesses or professionals working together. Effective communication and trust are crucial, as partners must coordinate their efforts and share the risks involved in the venture.