Basics of Partnerships

Question 1

Partnership

Answer 1

Association of 2 or more people to co-own an ongoing business for profit.

Distinct legal entity apart from the partners.

Question 2

Types of partnerships

Answer 2

General Partnership (GP) = Two or more general partners

Limited Partnership (LP) = at least one general partner and one limited partner

Limited Liability Partnership (LLP) = protects general partners from personal liability

Any partnership other than an LP can become an LLP.