— Partnerships —
There are two kinds of partnership entities: a general partnership and a limited partnership. These entities are nearly identical; the distinction involves liability and certain formalities. Both entities require a partnership agreement. A general partnership requires filing an Assumed Name Certificate with the clerk of whatever county the business is conducted. The limited partnership requires filing a Certificate of Limited Partnership. The life-span of both types of partnerships is for a designated period of time, set forth in the partnership agreement or until dissolution. Personal liability for both types of partnerships the same - joint and individual for the general partners who are responsible for the obligations of the partnership – except that limited partners are only liable to the extent of their capital contribution to the partnership. Neither type of partnership is regarded as a separate entity for tax purposes; business income is taxed through each partner’s personal tax return.