Partnerships are an agreement between two or more persons. They’re split into two main categories: general and limited.
General Partnership
This legal entity is an agreement between two more individuals who come together with the purpose of establishing a business for profit. Both partners have to contribute a skill, labor, property, or money. Furthermore, both partners incur losses and share in the profits of the business.
Limited Partnership
Limited partnerships are similar to their general counterpart except in the area of liability. While the latter offers both partners unlimited personal liability with regards to the business’s debts, limited partnerships only protect a partner to the amount they’ve invested