A business structure composed of two or more individuals who control the company and are personally liable for its debts. Profits and losses are split between all parties and their individual income tax returns.
Two or more people (or organizations) carrying on a business for profit (for the purpose of making money). The law recognizes such an enterprise as a legal partnership, whether or not the partners have a verbal or written partnership agreement. In a general partnership, the partners share profits, losses, and management of the business, and are all equally liable should the partnership be sued. In a limited partnership, there is at least one general partner who manages the business, and one or more limited partners who put in money and share profits and losses, but who are liable only to the extent of their investments, and who do not have management control. To be recognized as a limited partnership, however, the business must comply with legal formalities.
Business structure in which two or more people share ownership, although not necessarily equally.