What are the risks associated with entering into a general partnership?

Question

What are the risks associated with entering into a general partnership?

Answer 1

The Answer by 'Googie' is flawless.

      The next step is to determine why the partnership is not incorporated to protect the assets of both partners. The step thereafter is why not turn the partnership into an LLC (Limited Liability Corporation) which can allow the same income tax treatment as the Partnership...the same limited liability as the Corporation...and fewer less stringent technical compliance issues than a standard Corporation?

Answer 2

When you are a general partner in a partnership, you participate in the profits and are exposed to any losses which may occur. If the managing partner commits or overextends the partnership to risks such as the recent mortgage rate fiasco, all  partners are equal and severally liable.