Tag: Partnership

A partnership is a formal arrangement in which two or more parties agree to collaborate and share responsibilities, profits, and liabilities in a business venture or project. Partnerships can take various forms, including general partnerships, limited partnerships, and limited liability partnerships, each with different implications for the partners’ roles and legal liabilities. In a general partnership, all partners typically share equal responsibility for managing the business and are personally liable for its debts. In contrast, a limited partnership includes at least one general partner with unlimited liability, while other partners may have limited liability and limited involvement in management. Partnerships are often characterized by mutual cooperation, shared decision-making, and collective contributions of resources, skills, or capital. They are a common structure for small businesses, professional practices, and various other collaborative efforts.