Not subject to tax on income-partners report their share of income on personal income tax return. Mutual agency-every partner is an agent of the partnership and can enter into and bind it to any contract within the normal scope of its business. Unlimited liability-each partner is responsible for payment of all the debts partnership if the other partners are unable to pay a share.
Limited partnerships Have two classes of partners, general and limited.
The general partners assume unlimited liability for the debts of the partnership. The limited partners assume no personal liability beyond their invested amounts and cannot take active role in managing the company. Limited liability partnership Designed to protect innocent partners from malpractice or negligence claims resulting from the acts of another partner. Generally, all partners are personally liability for other partnership debts. Limited liability company Owner's called members, are protected with the limited liability feature of corporations and can assume an active management role.