General Partnership

A general partnership exists when two or more individuals or businesses associate for purposes of carrying on a business for profit. Under a general partnership, a separate business entity exists, but creditors can still look to the partners’ personal assets for satisfaction of debts. General partners share equally in assets and liabilities. A general partnership requires an annual partnership income tax return be filed (separate from the partners’ personal returns). Generally speaking, a General Partnership operates pursuant to the terms of a partnership agreement. However, there is no requirement that the agreement be in writing in order to be recognizable. Nor is there a state filing requirement for General Partnerships. If the business of the partnership is conducted under an assumed name (a name that does not include the surname of all of the partners), then an assumed name certificate (commonly referred to as a DBA) should be filed with the office of the county clerk in the county where a business premise is maintained. If no business premise is maintained, then an assumed name certificate should be filed in all counties where business is conducted under the assumed name. General partnerships directly and solely owned by natural persons are not subject to state franchise tax.