The KG (‘Kommanditgesellschaft’) consists of two groups of partners. There is a general or unlimited partner and a limited partner. The unlimited partner is liable with the contribution (mentioned in the contract of association or the actual higher contribution) and with his private property. In contrast the limited partner is liable with the contribution mentioned in the contract of association or the actual higher amount.
As the partnership is not a legal person, the KG is not subject to tax. Income taxes and solidary surcharge are levied on level of the limited and unlimited partners. However there is one exemption – the partnership is subject to trade tax in Germany.