Partnerships

Partnerships are a type of business entity where a business or company is shared by investor’s with the distribution of the profits and losses being shared in proportion to how much of a share they own in the company and agree to carry on an enterprise, contribute to it, by combining property, knowledge or activities.

To do such a thing the partners must correspond to a partnerships agreement which must then be registered and accessible for public inspection.

Partnerships are often preferred over corporations and possess
distinct advantages such as for taxation purposes, as a partnership constitution
eliminates the dividend tax charged upon profits realized by the owners of a
corporation or company.

In many areas, partnerships are also considered to be a legal entity, although different legal structures reach different conclusions on this point. The most common form of a partnership is a general partnership, in which every partner manages the business and they are personally liable for its debts.

Two other forms which have developed in most countries are the limited partnership (LP), in which certain "limited partners" relinquish their ability to manage the business in exchange for limited liability for the partnership's debts, and the limited liability partnership (LLP), in which all partners have some degree of limited liability.

Partnerships can be formed in many ways and do not always have to be based on the amount of money contributed to the business.