What is a partnership?
A Partnership is a business owned by two or more individuals that hasn’t filed as an alternative form of legal entity (e.g., corporation or LLC). In most instances, the arrangement does not require the filing of any paperwork; however, the arrangement starts as soon as two individuals start a business together. Partnerships aren’t required to hold meetings, prepare minutes, elect officers, or issue stock certificates. There are two kinds of partnerships: general and limited. General partnerships hold each partner equally responsible for all business debts and liabilities. If one partner dies, quits, or otherwise avoids meeting legal obligations, the other partners are held liable. Limited partnerships contain two kinds of partners: active business partners and investors who contribute financial support in the company, but cannot be active in running or making decisions concerning company activities. For this reason, limited partners are generally not held liable for legal obligations a
