Characteristics of a General Partnership or GP:
- It does not require any formality to be formed other than de agreement of the partners. However, it is always convenient to have a written partnership agreement.
- It requires at least two partners. Each of the partners can obligate the general partnership.
- All of the partners have unlimited liability are liable for all of their own acts and omissions and those of the general partnership and of the other partners. Each partner is liable for all debts and obligations of the GP.
- All profits and losses flow through to the partners as per their agreement, or as per local law which generally is in proportion to their contributions.
- Generally, the GP limits its liability by purchasing liability insurance.