Wondering if a partnership structure is the best fit for your new business? NCH can help you and your business partner make the best possible decision.

General Partnership

When two or more people come together for the purpose of conducting a business, it’s called a partnership. In forming a partnership, all partners must agree on their duties and what percentage of ownership they’ll each hold. Lawyers typically put this agreement together.

Partnerships are easy to form, but they’re taxed according to the individual tax levels of each partner. Likewise, there’s no liability protection. Businesses should seriously consider the consequences of litigation without any shield to protect the owners' personal assets.


  • Ease of Formation
  • Pass-Through Tax Treatment
  • Simple Tax Reporting


  • Personal Liability
  • Lack of Continuity
  • Lack of Investment Flexibility

Limited Partnership

Limited partnerships are composed of two types of participants: general partners and limited partners. General partners accept the responsibility for and take all the risks involved in managing and conducting the Nevada business. In contrast, limited partners are investors who share some risk (depending on the amount invested) but who have no participation in the actual management of the entity.

Limited partners simply enjoy the profits and share in the losses, based on what’s stipulated in the partnership agreement. While these provisions provide limited liability protection, they don’t allow any privacy for the parties involved.

Commonly used for estate planning, it allows individuals to control their assets while maintaining the ability to pass ownership of those assets to their heirs.


  • Pass-Through Tax Treatment
  • Financial Flexibility
  • IRS Discounting upon Death


  • Liability of the General Partner(s)
  • Lack of Control for the Limited Partners
  • Lack of Investment Flexibility

Is a Partnership the right structure for your new business?

Don't wait! Take advantage of the protections the law affords you and your business today. Still undecided? Let our Nevada business formation experts help you decide which entity is right for you by calling 1-800-508-1729.

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