General Partnership

Composed of business partners who participate in the day-to-day operations of the partnership, as well as have liability as owners for debts and lawsuits

• Limited Parnership

• Sole Proprietor

• General Partnership

• LLC

There are no formalities for a business relationship to become a general partnership

• True

• False

Which are examples of a General Partnership?

• Microsoft- Bill Gates and Paul Allen

• East Coast Sealcoating

• Apple Inc.- Steve Jobs and Steve Wozniak

• Grastorf Enterprises

All are advantages of a General Partnership except

• Easy to establish

• There is an increased ability to raise funds when there is more than one owner

• A partner cannot transfer interest in the business without the unanimous consent of the partners.

• Businesses as partnerships do not have to pay income tax

All are formalities of a General Partnership except

• There are no formalities for a General Partnership

• The partnership must minimally include two people

• All partners must agree to any liability that their partnership may incur

• The partnership should ideally be memorialized in a formal written partnership agreement, though oral agreements are no-less legally valid

Each of the partners will be taxed upon his or her share of the income from the partnership.

• True

• False

New York State Requirements for a General Partnership

• Choose a business name

• File a fictitious business name

• Draft and sign a partnership agreement

• Obtain licenses, permits, and zoning clearance

• Obtain an Employer Identification Number

How are the profits split

• Connor Decides

• By owners wealth

• None of the above

• As agreed upon by owners