Each partner is taxed on his or her share of the profit. To avoid future liability, a general partner who withdraws from the partnership must give notice to creditors, customers, and suppliers. A limited partnership is a business co-owned by one or more general partners who manage the business and limited partners who invest money in it. A master limited partnership is a business partnership that is owned and managed like a corporation but taxed like a partnership. The Partnership Agreement.
Articles of partnership are a written agreement listing and explaining the terms of the partnership.
Advantages of Partnerships Ease of Start-Up. Like sole proprietorships, partnerships are relatively easy to form. Availability of Capital and Credit. Partners can pool their funds so that their business has more capital than would be available to a sole proprietorship. Retention of Profits.