General Partnership (GP)
A California GP is simply a form of co-ownership by several persons. It must have two or more persons engaged in a business for profit. Except as otherwise provided by law, all partners are liable jointly and severally for all obligations of the partnership unless agreed by the claimant. Profits are taxed as personal income for the partners.
However, general partnership has some of the attributes of a separate legal entity:
• It can hold and convey legal title to real property in its own name.
• It can sue and be sued in the partnership name.
• Its existence continues even after the “dissociation” of one or more partners (however, a forced buy-out right may be triggered by the “dissociation”).