General Partner
Candlefocus EditorMost commonly, general partners are doctors, lawyers, or other professionals who want to stay independent but join a partnership in order to expand their business. Joining a partnership provides the advantage of scale and the ability to pool financial and other resources.
Being a general partner is different from being a regular shareholder. As a general partner, you are involved in the operations and management of the business, and you have an ownership stake in it. Your liability is also greater than that of a shareholder, because general partners are personally liable for the debts of the business.
General partners are typically in charge of day-to-day operations, such as making decisions about products, implementing marketing strategies, and overseeing hiring and financial management. They are ultimately accountable for the success or failure of the business and must be comfortable taking risks.
When it comes to partnerships, general partners are usually or in most cases the oldest partners, as they tend to have the most experience. As a result, they hold the majority of control in the partnership while the other partners play a supporting role. Each partner’s responsibility is determined by how their respective contracts are laid out before the partnership is formed.
If you’re looking to start a business but don’t want the burden of running it yourself, joining a partnership as a general partner can be a great option. It allows you to reap all the rewards without any of the pitfalls. Just be sure to understand the implications of being personally liable for the debts of the business and the risks that come with such a role.