Why sole proprietorships and general partnerships offer no protection at all (continued).
In Nevada, each partner is personally liable, jointly and severally, for business debts, taxes and tortious liability. As an example, if a partnership defaults on a payment to a creditor, the partners’ personal assets are subject to attachment and liquidation to satisfy the creditor. Moreover, each general partner is an agent of the partnership. Therefore, if one partner is carrying out partnership business, all general partners can be held liable for dealings with third parties. By default, each general partner has a right to participate in the management and control of the business. Disagreements in the ordinary course of the partnership are decided by a majority of the partners which may prove difficult.
In the event of death, disability, or withdrawal of a general partner, the partnership is terminated. However, most partnerships provide for these type of events within a given agreement, with the share of the departed partner being purchased by the remaining ones.
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