• Partners are jointly and severally liable for the actions of other partnership obligations including contracts, torts, and breaches of trust. Joint and several liability means that if a third party were to sue the partners, the third party can sue any one of the partners without suing all of them. If a partner has been sued but cannot pay the third party the full amount, the third party may collect the money from the remaining partners.
• Each partner is individually liable for the debts and obligations of the business; if the business does not have enough assets to pay back business debts, creditors can take the personal assets of the partners.
• A partner cannot transfer interest in the business without the unanimous consent of the partners.
• Partnerships can potentially be unstable because of the danger of dissolution if one partner wants to withdrawal from the business or dies.