A partnership involves two or more people going into business together. Unlike a company, a partnership is not a separate legal entity. Each partner jointly owns all the business’ assets and liabilities.
Partnerships are classified as either general or limited. A general partnership involves each partner being equally responsible for the management of the business, and each has unlimited liability for debts and obligations. A limited partnership must have at least 1 general partner and at least 1 limited partner. General partners are responsible for the day-to-day running of the limited partnership and their debt is unlimited. Limited partners do not take part in the management of the limited partnership and has his/her liability limited to the amount contributed to the partnership.