What is a business partnership?

A business partnership is a way of organizing a company that is owned and sometimes run by two or more people or entities. The partners share in the profits or losses. Before you establish a business partnership, you should investigate the various types of partnerships that are available and how each of them works.

What is a partnership & how does it work?

A partnership is a business with more than one owner that hasn't filed papers with the state to become a corporation or limited liability company (LLC). The partnership is the simplest and least expensive co-owned business structure to create and maintain. You can form three basic types of partnerships.

Who is a partner in a business?

Partners may contribute capital, labor, skills, and experience to the business. They may have unlimited legal liability for the actions of the partnership and its partners. The most common type of partner is a general partner, who actively manages and exercises control over the business operations. Limited partners have limited legal liability.