SESKStuff Everyone Should Know
SESK: Stuff Everyone Should Know · sesk.info/biz-general-partner-liability

In most states, how much personal liability do partners in a general partnership have?

Unlimited personal liability.

Start playing free

  1. Unlimited personal liability ✔
  2. None, the partnership shields them
  3. Liability only up to their investment

Why: The SBA's comparison chart lists partnerships as having unlimited personal liability unless structured as a limited partnership. In most states, general partners' personal assets can be exposed to business debts.

Huh, didn't know that: In most states, a limited partnership has a general partner with unlimited liability and limited partners with limited liability.

The dad joke
I lost a banana in court, but then I appealed.
Like this card?
Play the game

References

Answer: Unlimited personal liability. The SBA's comparison chart lists partnerships as having unlimited personal liability unless structured as a limited partnership. In most states, general partners' personal assets can be exposed to business debts.

  1. SBA: Choose a business structure www.sba.gov/business-guide/launch-your-business/choose-business-structure
    Partnerships Two or more people Unlimited personal liability unless structured as a limited partnership
    Checked 2026-10-11.

Think this answer is wrong? Tap "Challenge this answer" on the card in the game and tell us why.

Test yourself in the game

Starting and Running a BusinessWho is responsible for a sole proprietorship's business debts?Starting and Running a BusinessWhat does each partner put into a partnership, according to the IRS?Starting and Running a BusinessWhat does "piercing the corporate veil" mean?

That's stuff everyone should know.