ABSTRACT
A general partnership is a voluntary association of two or more individuals for business entities who agree to work together for a common business purpose. The partners, who own the business, share their profits or losses equally or as otherwise provided by agreement. Like proprietorships, partnerships can be formed easily. The general partner, in contrast, has unlimited liability for the partnership’s debts and obligations. A limited partnership is formed by filing a certificate of limited partnership with the designated state agency, typically the Secretary of State. The corporate form is considered the leading business form in the United States. Regular corporations, as they are called, are formed upon filing a certificate of incorporation with the Secretary of State or other designated official in the state where the business will be established. The shareholders’ maneuvering to limit corporate income, yet put as much money in their pockets as possible, must be carried out carefully and delicately.
