General partnership is a form of an enterprise, which implies presence of two or more partners. These partners are the founders of the partnership.

• Liability. General partnership has the same type of liability as sole proprietorship. All partners are responsible for business debts. In case of company’s bankruptcy, partners will be covering lack of assets with their own estate.
• Income taxes. Like income of sole proprietorship, general partnerships’ income isn’t a subject to taxation. General partnership has only one level of taxation – income taxes are paid only by partners after they receive their share of profit. This share is equal regardless their contributions (if other is not stipulated in written). Losses are covered equally too (if other is not stipulated in written) (Moye J. E. 2004, p.42).
• Longevity. General proprietorship can live longer than sole proprietorship. When one of the partners leaves, partnership is dissolved and the partnership becomes a new legal entity.
• Control. All partners in a general partnership have full control of it. If other is not mentioned in written, all partners has equal number of votes even if they have made different contributions.
• Profit retention. As it was mentioned above, all partners get equal shares of profit, even if their contributions neither were nor equal.
• Location. Taxation for general partnership depends on the state where the income was derived. General partnership should use Schedule R to apportion income between the states.
• Convenience. The main advantage of this form of an enterprise is low volume of paperwork needed for registration and its cheapness.
• Burden. The main burden for a general partnership is the same as for a sole proprietorship. Besides the fact that number of contributors is more than one it is still quite hard to get additional funds at a low price.