Partnerships

• Can be organized as general partnerships or limited partnerships
• Income from the partnership is taxed at the personal level
  • Income is split among partners according to their ownership in the partnership

General Partnership

• All general partners have unlimited liability
  • Personally liable for the firm’s debt obligations
• Partnership ends on the death or withdrawal of any single partner

Limited Partnership

• Partnership with two kinds of owners, general partners, and limited partners
  • General partners have the same rights and privileges as partners in any general partnership
  • Limited partners have limited liability
    • Has no management authority

Limited liability Partnership (LLP)

• Used in Canada for law and accounting firms
• Provides partial limitation of a partner’s liability in cases related to actions of negligence of other partners