A general partnership is essentially the same legal structure as a sole proprietorship . It represents the agreement of two or more people for the purpose of pooling collective resources to perform a significant economic activity.

The agreement between people is usually in the form of a contract that governs rights and responsibilities, but it is not mandatory although desirable. Contact aims to reduce the possibility of conflict between partners. We use the term associate to define general partnership partners.

The general partnership is not a separate legal entity. Income is established according to the share of profits belonging to the partner and entered in the individual's income tax return.

Back to blog