Partnerships are business structures consisting of two or more owners who share responsibilities and profits. There are three categories of partnerships - general partnerships where all members share equal risk and reward, limited partnerships where one partner has control and others provide financial support, and limited liability partnerships where partners have limits on risks and rewards. Partnerships offer advantages like easy creation and access to more resources, but also carry disadvantages like unlimited liability for general partners and potential for conflicts between partners.

1. Partnerships What are they?

2. Partnerships Defined A Partnership is a business structure consisting of two or more owners who split responsibilities and profits. There are three basic categories of partnerships: General Partnerships , in which all members share the risk and rewards equally Limited Partnerships , in which only one partner has control but receives financial support from the other partners Limited Liability Partnerships , in which all partners have limits on their risks and rewards. The General Partnership is by far the most common in the United States.

3. Advantages Partnerships have many advantages that make them attractive to potential business owners. They are very easy to create through either a set of Articles of Partnership that spell out each partners role, or under the Uniform Partnership Act , a state level act that provides guidelines for the creation of partnerships. They have a larger pool of resources available They face few special taxes They allow for specialized decision making by different partners

4. Disadvantages Partnerships do have some significant potential disadvantages as well. Each general partner has unlimited liability, even for the actions of the other general partners. There is a distinct potential for conflict arising from disagreements between partners on various aspects of decision making