What is a partnership?

A partnership is a structure that allows ownership of a business by more than one individual. When you structure a partnership, there are two types to choose from: a general partnership and a limited partnership. Generally, in a general partnership the owner will still be personally liable. With a limited partnership, there may be ownership liability but it may be limited. There are no legal requirements to start a partnership when it is not a corporation or limited liability company. While legally you do not need to have a written agreement, it is always a good idea to have one. The partnership agreement will spell out the understanding between the partners including their role in the running of the business, the division of profits and losses, who has authority and control and various other issues. If a partnership agreement does not exist and a problem arises, the state partnership law will determine the obligations of the