Understanding the Different Types of Partnerships and Their Key Differences
Posted by Mirwan bugti and classified in Law & Jurisprudence
Written on in English with a size of 7.13 KB
A partnership is a form of business where two or more people share ownership, as well as the responsibility for managing the company and the income or losses the business generates. That income is paid to partners, who then claim it on their personal tax returns – the business is not taxed separately, as corporations are, on its profits or losses.
There are three types of partnerships:
- General partnership
- Limited partnership
- Joint venture
General Partnership
In a general partnership, each partner shares equally in the workload, liability, and profits generated and paid out to the partners. All partners are actively involved in the business’s operations.
Limited Partnership
Limited partnerships allow outside investors to buy into a business but... Continue reading "Understanding the Different Types of Partnerships and Their Key Differences" »