Changes

A '''general partner''' is a person who, along with at least one other partner, owns and operates a business for profit '''and''' is personally liable for the debts and obligations of the business.  This is in contrast with an owner of a [[corporation]], who is usually not personally liable absent some finding that the corporation was merely the '''altar ego''' of the person and really didn't do any real business (in this case, a court can '''pierce the corporate veil''' and order the owner to personally pay the debts).

A '''general partner''' is a person who, along with at least one other partner, owns and operates a business for profit '''and''' is personally liable for the debts and obligations of the business.  This is in contrast with an owner of a [[corporation]], who is usually not personally liable absent some finding that the corporation was merely the '''altar ego''' of the person and really didn't do any real business (in this case, a court can '''pierce the corporate veil''' and order the owner to personally pay the debts).

A '''general partner''' can also legally bind the business with his actions.

A general partner can also legally bind the business with his actions.

In a limited partnership, there must be at least one general partner.  As such, it is common for the general partner to be a corporation or a limited liability company (LLC), as those entities would be liable only to the extent of their assets.  It is also common in those cases for the corporation or LLC to be owned by the other partner(s).

In a limited partnership, there must be at least one general partner.  As such, it is common for the general partner to be a corporation or a limited liability company (LLC), as those entities would be liable only to the extent of their assets.  It is also common for one person to be both the sole limited partner in a partnership, and to be the sole owner of the corporation/LLC that is the general partner.

[[Category:Legal Terms]]

[[Category:Legal Terms]]