What is a Partnership?

A partnership is similar to a sole proprietorship with one major difference being a partnership involves involves multiple people owning a business. In a standard partnership, each partner is personally liable for the partnership. Partners carry on business on the understanding that they will share in the profits or losses of the business.

Partnerships often have a business name by which the partnership is known to the public. This business name must be registered with Information Services Corporation.

A partnership may also be formed as a limited liability partnership. This form of partnership limits some of the personal responsibility of the partners for the acts of the partnerships and their fellow partners.

One major advantage of a partnership is the flexibility to it provides to the partners of the organization in determining how to organize and structure the management of the firm. A second major advantage is that some partnerships may receive tax advantages compared to other forms of businesses.