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An organization comprised of a general partner, who manages a fund, and limited partners, who invest money but have limited liability and are not involved with the day-to-day management of the fund.
A general partner is a part-owner of a partnership business and is involved with its operations and shares in its profits. A general partner is often a doctor, lawyer, or another professional who has joined a partnership in order to remain independent while being part of a larger business.
An LLP or an LLC with two or more members will be treated as a partnership if it's treated as a partnership for federal tax purposes. An LLP or LLC will be treated as a corporation for Massachusetts income tax purposes if it is classified as such for federal tax purposes.
Businesses are required to register with an EIN/FEIN in MassTaxConnect. Sole proprietors must register under their Social Security number. A sole proprietor with employees must also provide an EIN/FEIN.
A partnership is not directly subject to income tax. Instead, each partner is taxed on the part- ner's share of the partnership income, whether distributed or not.
Since a general partnership is an informal business structure, there's no requirement to file any formation documents with the secretary of state in order to create one. The only thing that's required is an agreement between at least two people to go into business together and share profits.
Some states only require that the certificate contains the name of the limited partnership, the name and address of the registered agent and registered office, and the names and addresses of all of the general partners.
General Partnership Formation in Rhode Island & Massachusetts. You do not need to formally register a general partnership. A general partnership can be formed by a verbal or written agreement, or simply because of how a business operates.