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General Partnership (GP) Agreement

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General Partnership (GP) Agreement

Updated August 05, 2022

A general partnership (GP) agreement is between partners that each share equal liability in the partnership. In a general partnership, there are no limited members. Meaning, all partners have the same financial and legal personal liability.

Main Purpose

A general partnership holds all partners liable. Therefore, it should be selected when all partners are actively involved in the business.

Pros and Cons

Below are the pros and cons of a general partnership in comparison to other types.


  • Easy to create.
  • Easy to report taxes.
  • Easy to dissolve.


  • All partners are personally liable.
  • All partners are personally liable for other partners’ actions on behalf of the business.
  • Terminates if a partner dies or withdraws from the entity.