What is the partnership?

Partnership is a profitable motivated business relationship between two or more participants. Participants can be individuals, groups, companies or corporations. Types of business partnerships are usually defined by the role that each partner plays in the activity of the company and the amount of personal responsibility assumed by the partners. Common forms include general partnership, limited liability partnership and limited liability partnership. The conditions may vary, but the degree of involvement and personal responsibility of partners remains the same. In this type of partnership, each partner shares control of business operations and in the division of any profits. In addition, partners are individually and together for all debts arising from business activities carried out on behalf of the partnership by any partner. Each partner can also contractually bind partnership, with or clergy or consent of other partners. If each partner is taxed according to the level of person's income, then he could face minor under this business arrangementthe tax burden. The partner can also use business losses to settle tax liability from other investments or businesses. A special job or personal relationship between participants can also make the open nature of this form attractive.

Limited partnership consists of a general partner and one or more limited partners. The General Partner has an exclusive power in the management and inspection of business activities. For this reason, the General Partner assumes exclusive personal responsibility for the company's debts and obligations. Limited partners do not apply to the management of the Plants and their personal financial liability is limited to the amount invested. In the previous arrangement, the General Partner may be entitled to a greater share of profit than to limited partners.

Another type of partnership, limited partnership, is in most matters similar to a general partnership. According to this arrangementHowever, the partner cannot be responsible for the consequences of negligence or illegal activity by another partner. In this respect, partnership partnerships in this respect have partnership elements and corporations. Its implementation in individual countries differs greatly between countries and even between jurisdictions in the country. This type of business arrangement adapts to the desire of the participants to have a direct role in the management while protected from the event of other partners who may not be in the best interest of partnership.