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Like sole proprietorships, an Idaho general partnership will leave you open to personal liability. This means that your personal assets, bank accounts, savings, investments, car and home can all be used to satisfy a business debt.

However, the scope of liability is even broader with a partnership because every partner is fully liable for the business’ debts and obligations and for the actions of other partners.

Unlimited Liability

For example, if you own a spa, and your partner negligently injures a client during a massage, you could potentially be on the hook for that. You cannot use your partnership agreement to avoid liability for the acts of your partners. Your partner also has the same liability for you.

To solve this issue you should form an Idaho LLC to limit the liability of each partner personally.