Which Form 8865 Partnership 2023-2024

Okay, what are the types of partnership? Okay, there are several classifications of partnerships or forms of partnership. The first is the general partnership, and that's the most commonly understood. The general partnership doesn't necessarily need to be filed anywhere. It is where the partners to the business activity, commercial activity, generally share equal responsibilities, rights, and decision-making in the partnership. Through a partnership agreement, you can limit the type of activities that one partner can undertake versus another partner. However, the court structure defaults to equal ownership, equal distribution of profits or losses, and equal decision-making authority. So, that's the general partnership, which is not necessarily filed with the state, but in some situations, it can be. Now, a specialty entity type that has to be filed with the state is the limited partnership. The purpose of the limited partnership is to allow partners who don't want to take part in the business but provide some level of advice, financing, or capital contribution to the commercial activity. They want to maintain a level of separation and not be involved in the day-to-day operations. The limited partner status allows them to avoid personal liability for any contractor tort damages arising from the partnership activity. For example, if John is a general partner and Jane is a limited partner, and John undertakes an activity that causes liability for the partnership, Jane stands to lose any money she invested into the business, but she is not personally liable beyond that contribution to the partnership. On the other hand, the general partner, like all general partners, is subject to personal liability for the business activity. Another type is the limited liability partnership (LLP). In most states, this entity status is reserved for certain professional practitioners that provide professional services, such as doctors, dentists, accountants, attorneys,...