A general partnership is a business structure where two or more individuals share ownership, profits, and — critically — unlimited personal liability for the venture's debts and obligations.
In real estate, some co-owners informally structure their arrangement as a general partnership, but this can be risky. Every partner is personally liable for the full obligations of the property, meaning one partner's mistake or debt could expose the others to significant financial harm. There's no liability shield, and disputes can be difficult to resolve without a formal operating agreement.
GoForth, a luxury co-ownership company, deliberately avoids the general partnership model. Instead, GoForth structures every property under a limited liability company (LLC) with a comprehensive operating agreement. This protects each of the four co-owning families from personal liability beyond their investment and provides clear rules for decision-making, usage scheduling, expenses, and exits. It's one of the key reasons GoForth's model is safer and more sustainable than informal co-ownership arrangements.