Country Z shareholders owing stock in foreign corporations are not subject to double taxation as a result of the liquidation of a foreign corporation. Thus, careful consideration and a thorough understanding of both the U.S. taxation of international transactions and the international taxation of transactions within the U.S. are essential in doing any substantive planning in this area. Corporate shareholders are only liable to the extent of their investment in the corporation. Partners in a general partnership are liable for all debts and obligations of the partnership. Continuity of Life .
Partnerships generally terminate on a fixed date.
Free Transferability of Interest . Generally, state law prevents the transfer of a partnership interest, absent unanimous consent of the partners. Centralized Management . Corporations are run by a core group of individuals, the officers. Conversely, in a general partnership, all partners have the right to participate in the management of the partnership.