There are several types of partnerships, each with different legal and operational structures. The main types include:
1.General Partnership (GP)
•All partners share equal responsibility for managing the business.
•Profits and liabilities are shared equally unless otherwise agreed.
•Partners have unlimited personal liability for debts.
2.Limited Partnership (LP)
•Includes both general partners (who manage the business and have unlimited liability) and limited partners (who invest but have limited liability).
•Limited partners typically don’t participate in daily management.
3.Limited Liability Partnership (LLP)
•All partners have limited liability, meaning they are not personally responsible for the business’s debts.
•Common among professionals like lawyers, accountants, and consultants.
4.Limited Liability Limited Partnership (LLLP)
•A hybrid of LP and LLP, where both general and limited partners have limited liability.
•Less common and recognized in select jurisdictions.
5.Joint Venture (JV)
•A temporary partnership between two or more entities for a specific project or purpose.
•Ends once the project is completed.
6.Silent Partnership
•One or more silent partners invest capital but do not participate in management.
•Silent partners have limited liability based on their investment.
Each type has different legal, tax, and liability implications. The right choice depends on factors like control, risk tolerance, and tax considerations.