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What is the parnership types

When discussing partnership types, it's important to differentiate between general business partnerships and broader partnership concepts. Here's a breakdown focusing on common business partnership structures:

Key Business Partnership Types:

General Partnership (GP):

This is the simplest form.

Two or more individuals share in the profits, losses, and liabilities of the business.

All partners have equal rights to manage the business.

Critically, all partners have unlimited personal liability.

Limited Partnership (LP):

This type includes:

General partners: Who manage the business and have unlimited liability.

Limited partners: Who invest capital but have limited liability (usually up to their investment) and limited involvement in management.

LPs are often used for investment ventures.

Limited Liability Partnership (LLP):

All partners have limited liability, meaning they are generally not personally liable for the negligence or misconduct of other partners.

LLPs are commonly used by professionals like lawyers, accountants, and architects.

LLC partnership (multi-member LLC):

A Limited Liability Company can be owned by multiple people. When this occurs it can be referred to as a LLC partnership.