Synergy as a result of pooling partners' different areas of expertise. The partnership does not pay Federal in-come taxes. Liability may be spread among the partners. Investment can come from the partners in the form of a loan which creates interest income for the partners and a business deduction for the partnership. Formation and subsequent changes in structure are complex.
Limited partners are liable for debt if they are active managers in the business.
General partners have unlimited liability. You may also be liable for the commitments of your partners. All of these forms of the corporation are complex legal entities. It is essential for you to obtain legal advice if you are thinking about forming a corporation. Most offices can provide a guide for new businesses to follow for incorporation and doing business in their state.