Partnership info

A partnership, also known as a general partnership, is an association of two or
more individuals or business entities, called partners, who own and operate a
business together.

Like a sole proprietorship, a partnership is not a separate legal entity.
Therefore, all of the partners are personally responsible for all debts and legal
claims against the partnership. You can even be held liable for obligations
created by your partner without your permission.

NO. If a claim is made against the partnership, you are personally responsible
for the entire claim. If your other partners do not have any personal assets and
you do, then your assets will be available to satisfy the entire claim. Your
remedy is only the right to contribution from the other partners. This is little
comfort if they have no assets.

YES. Like the sole proprietorship, liability insurance can be purchased by the
partnership. The drawbacks of liability insurance are the same as those
explained under the sole proprietorship heading.

All income from the business is directly taxable to the partners. This is
sometimes called “pass-through” taxation.