A general partnership (GP) is an unincorporated business with two or more owners. Those owners share the business responsibilities. Under a GP, the general partners are personally liable for any debts and obligations of the business. Partners are required to report their share of the profits and losses on their personal tax returns.
Compared to other entity structures, it is easy to run a general partnership, as there are minimal ongoing formalities such as meetings or annual reporting requirements. Partners can enter into contracts or deals that are binding on other partners. This is convenient, but it does mean that you should only go into a GP with a person or persons you can trust.
There are advantages and disadvantages to running a general partnership as with any entity type. Before starting a business, you need to be well aware of what to expect and what troubles you could run into.
General partnerships are formed in the state the partners conduct business. In addition to registering as a GP with the state, you must appoint a registered agent.
A registered agent is a business’s legal appointee to receive notices of lawsuits and other legal or government notices during regular business hours. State law requires every GP to have a registered agent. A registered agent must have a physical office address in the state where you conduct business. The documents they collect are often time-sensitive, so choosing a reliable registered service agent is essential.
Harbor Compliance is also a nationwide registered agent provider. We support your company as it grows, offering local offices with same-day document scanning. Easy online ordering means you have service in minutes. View our service page or contact us for more information.
Harbor Compliance’s registered agent service provides your GP's forms and filing instructions. When you work with us, you are immediately granted online access to a registered agent address, and you can expect same-day delivery of your documents. While we handle the registered agent element of your business, you can focus on meeting your goals and expanding your general partnership.