4. Is a partnership certified as a natural person a legal person? Limited partnerships are generally very attractive to investors because of the different responsibilities of general partners and limited partners. Another consequence for shareholders is the taxation of a partnership. The partnership itself does not pay taxes, although it may be required to report its profits to the relevant tax collection agency. Taxes are paid by the partners individually at their personal tax rate. This accrediting tax also means that any loss of the partnership can be deducted from the individual partner`s other sources of income. d. Designated Associates – Each LLP must have at least two persons as designated partners. One of them must be based in India. But in the case of an LLP, where all partners are corporations, there is a restrictive covenant – at least two persons appointed by other entities are required by law to act as designated partners. The partners of a partnership have a duty to work in the best interests of the partnership and with one another.

By imposing a ban on resignation, individuals are motivated to take seriously their responsibility as partners and to commit to at least a minimum period with the partnership. Other partners can then feel comfortable relying on the commitment of their fellow partners to the purpose and objectives of the partnership. On the other hand, the fact that the assets used by the partnership are not jointly held does not mean that there is no partnership [Note 10]. Limited liability companies are a common structure for professionals such as accountants, lawyers and architects. This agreement limits the personal liability of partners, so that, for example, if a partner is sued for misconduct, the assets of the other partners are not at risk. Some law and audit firms also distinguish between partners and business partners. The latter is older than the partners, but has no property rights. These are usually bonuses based on the company`s profits. Generally not. While you are still free to register your partnership with the state government, you only need to register your partnership with the local, state, or county government in certain circumstances. The requirements differ for each state. Please contact the sales department or department in your jurisdiction to determine if you need to register your partnership.