Which description matches a General Partnership?

Which description matches a General Partnership?

• A. A single owner with indefinite liability.
• B. Filed articles of organization and pass-through taxation.
• C. Two or more owners carrying on a business for profit, no filing required, partners personally liable.
• D. A separate legal entity with limited liability.

Answer: (C)

General partnerships are formed when two or more people carry on a business for profit as co-owners without creating a separate legal entity. Key features are that there is no required filing to form the partnership, and the partners have personal liability for the partnership’s debts and obligations; each partner can bind the partnership in ordinary business deals, and profits pass through to the partners for tax purposes. This aligns with the description of two or more owners carrying on a business for profit, no filing required, and partners personally liable. The other descriptions point to different forms: a sole proprietorship involves a single owner; a filing requirement with a separate entity points to LLCs or corporations (which also often provide limited liability); and a separate legal entity with limited liability describes those corporate forms rather than a general partnership.

General partnerships are formed when two or more people carry on a business for profit as co-owners without creating a separate legal entity. Key features are that there is no required filing to form the partnership, and the partners have personal liability for the partnership’s debts and obligations; each partner can bind the partnership in ordinary business deals, and profits pass through to the partners for tax purposes. This aligns with the description of two or more owners carrying on a business for profit, no filing required, and partners personally liable.

The other descriptions point to different forms: a sole proprietorship involves a single owner; a filing requirement with a separate entity points to LLCs or corporations (which also often provide limited liability); and a separate legal entity with limited liability describes those corporate forms rather than a general partnership.