General Partnership

Do you see your business and your fellow owners as part of a brother or sisterhood of equals? A partnership may be right for you. Available to any business that has at least two owners, partnerships were originally thought to be the ideal business form for a brother or sisterhood of equals.

What makes a general partnership (“GP”) unique? First, it can be formed without any formal filings or organizational documents – in the absence of any contrary indications, two people collaborating to run a business can be enough to create a GP. It also divides profits equally among the partners involved unless they take the extra effort to agree otherwise. On the other hand, a GP does not provide partners with any insulation from the financial or legal liabilities of the business. If partners reach gridlock or one passes away unexpectedly, the partnership will cease to be. What’s more, an interest in the partnership cannot be transferred – under most circumstances this will terminate the partnership as well.

At Garrett, Walker & Aycoth, we can help you balance the pros and cons of a general partnership. Our attorneys have the knowledge and skill required to help you decide if a GP is right for your business and to work around some of their common pitfalls if you decide it is the best option. Call us today at (336) 379-0539 or contact us to schedule an in-depth consultation.


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