Each structure has its own set of characteristics and regulations detailed below. The lists of characteristics and regulations below are by no means complete, other rules and regulations may apply depending on the location of the business. The businesses' liabilities are your personal liabilities, i.e. unlimited personal liability. You file IRS Schedule C, Profit or Loss From Business, with your personal tax return. Is the relationship existing between two or more persons who join together to carry on a trade or business where each person shares in the profits and losses of the business.
Partners have unlimited personal liability.
Must file an application with the State Corporation Commission who then notifies the locality. Must file IRS Form 1065, U.S. Partnership Return of Income. Consists of one or more general partners and one or more limited partners, who have no individual liability other than their initial investment. Limited partners are restricted in their ability to participate in managing the business. Is created by express written agreement that defines the roles of each partner and must be signed by each partner.