What is partnership?
A General Partnership is a form of business organized by two or more individuals who do not want to set up a Corporation or other type of company. In this case the members are responsible for any debts and liabilities in proportion to their stake in share capital of the Partnership. In the same way they participate in the distribution of profits. In the case of a General Partnership, only the income of the members is subject to taxes. The simplest type of partnership is a Sole Partnership. A Sole Partnership is a business entity connected with the sole owner. In this case the owner runs the business on his own behalf. In a Limited Partnership the assets and liabilities are divided between general and limited partners. Thus, limited partners in contrast to general members are liable for the debts and liabilities of the Partnership only to the amount of their stakes in the partnership’s capital. In a Limited Liability Partnership the assets of each partner are more secured. This is due t
