why general partnership need not formally organize with the state?( income tax)

Accounting
Tutor: None Selected Time limit: 1 Day

why general partnership need not formally organize with the state?  

Could some help me explain it?

Oct 18th, 2015

Thank you for the opportunity to help you with your question!

In a general partnership, you also have unlimited, personal liability for the acts of all of the other owners.The general partner experiences all of the same exposures to liability as the sole proprietor, plus unlimited, personal liability for the acts of all of his co-owners. This should make even the biggest risk-taker reconsider that decision.It has been said that when the biggest accounting firms were operating as general partnerships, they relied on one asset protection strategy.

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Oct 18th, 2015

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Oct 18th, 2015
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