Are general partners liable if a company is a limited partnership?

Unless otherwise stated in the partnership agreement, general partners will all equally share in the profits, losses and liabilities of the company. Their personal assets are equally liable for the business’s debts and obligations. However, this is not the case for limited partnerships.

What is a partnership business?

A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits. There are several types of partnership arrangements. In particular, in a partnership business, all partners share liabilities and profits equally, while in others, partners may have limited liability.

Can a partnership be sued for a business debt?

Furthermore, any partner may be sued for the business's debts. Since a general partnership is a pass-through entity where income flows straight to the owners, each partner reports their share of partnership profits or losses on their personal tax returns. The partnership itself is not taxed.