Partnerships come in several types, each with different levels of liability, responsibility, and legal structure. Here are the main types:
1. General Partnership (GP)
All partners share equal responsibility for managing the business.
Each partner has unlimited personal liability for debts and obligations.
Profits and losses are shared as per the agreement.
2. Limited Partnership (LP)
Consists of at least one general partner (who manages the business and has unlimited liability) and one or more limited partners (who invest but have limited liability).
Limited partners are only liable up to their investment amount.
3. Limited Liability Partnership (LLP)
All partners have limited liability, protecting their personal assets.
Common among professionals like lawyers, accountants, and doctors.
Each partner is not responsible for the negligence or misconduct of the other partners.
4. Limited Liability Limited Partnership (LLLP)
A variation of an LP, where general partners also have limited liability.
Not recognized in all jurisdictions.
5. Joint Venture (JV)
A temporary partnership between two or more parties for a specific project or purpose.
Once the project is completed, the JV is dissolved unless extended.
6. Silent Partnership
One partner (silent partner) invests capital but does not participate in day-to-day management.
The silent partner usually has limited liability.
Each type of partnership has different legal, financial, and tax implications. Choosing the right one depends on factors like liability protection, management control, and taxation prefere
nces. Do you have a specific scenario in mind?