General Partnership (GP)

A General Partnership (GP) is a company where several persons jointly carry out an independent entrepreneurial activity under the common company name. In GP the obligations of one or several partners towards the creditors of the partnership are limited to their investments into the company (limited partners – Comandits), while the other partners (Complementary) are personally liable for any debts arising in course of operation of the GP.

General Partnership (GP)

How to form a Georgia partnership

Georgia allows different types of partnerships, each with their own set of advantages.

The simplest partnership structure, a general partnership offers no liability protection. The partners (called general partners) are liable for all the debts of the GP regardless of how the debts were incurred or which partner was responsible for incurring them.

As mentioned above, all partnerships in Georgia are considered pass-through entities. Thus, the general partners have to report the income or losses sustained by the business on their tax returns.

For more details about setting up a company in Georgia, you may contact our Company Formation Georgia lawyers in Georgia.