Definition:

An association of two or more persons as co-owners of a business for profit

Start-up:

General Partnership:

Each partner has an equal voice in managing the business

Written partnership agreement can give management authority to certain partners

All general partners are jointly and severally liable for most obligations

No expense or legal formality is required to organize

Limited Liability Partnership (LLP):

Provides certain limits on a partners’ personal liability

To register a registration statement and fees must be filed with the state

Limited Partnership:

Management is reserved to a certain partner(s) called general partner(s)

Remaining partners are general partners do not participate in management

Limited partners only liable for partnership obligations if they participate in management

General partners are jointly liable for most partnership obligations

To form a certificate of limited partnership and fees must be filed with the state

More about partnerships...