What is a partnership in business?

A partnership describes two or more parties that share responsibility for a business’s profits and liabilities. Learn about the three main types of partnerships here. A partnership is a form of business where two or more people share ownership and responsibility for a company.

What is a business partnership agreement?

Business partners agree to share the profits, losses, and management of a company. Unless otherwise stated in a partnership agreement, each partner has equal interest and shares in the decision-making process, regardless of the amount of money they initially contribute to the partnership.

Who is a partner in a business?

Partners may contribute capital, labor, skills, and experience to the business. They may have unlimited legal liability for the actions of the partnership and its partners. The most common type of partner is a general partner, who actively manages and exercises control over the business operations. Limited partners have limited legal liability.