Partnership is what type of business

The decision will come down to the strengths and resources of each partner, the type of business, and your long-term goals for the business. General partnership.

Joint venture. A joint venture is almost identical to the general partnership, however, it is for a single project as opposed to a business. With a joint venture, the nature of the partnership can change as time passes.

If the venture is successful, it can be made into a general partnership if the partners decide that they want to work on new ventures together. Limited partnership. Limited partnerships are different than general partnerships and joint ventures because the partners do not share equally in the responsibilities.

Read more about how a partnership pays income taxes. If you are interested in starting a partnership, this article takes you through the process step by step. Richmond School of Law. Accessed Aug. Cornell Legal Information Institute. Small Business Administration. Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance.

Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Table of Contents Expand. Table of Contents. What is a Partnership? Considering Liability in Partnerships.

General Partnership. Limited Partnership. Limited Liability Partnership. LLC or Partnership. Partnerships and Tax Issues. By Jean Murray. Learn about our editorial policies. Article Sources. Recently, LLCs have overtaken general and limited partnerships as the most popular business structure.

The main reason for this is that LLCs offer much stronger liability protections than partnerships and are also much easier to run. For example, in a limited partnership, at least one partner must remain a general partner and this partner will be exposed to liability. No such requirement exists for an LLC. With an LLC, none of the company members need to take place in the day-to-day operations of the business.

Instead, members of the LLC can hire an outside manager to run the company. Partnerships, no matter which type you choose, are much easier and more affordable to establish than limited liability companies.

So, if you are interested in investing in a business and want to limit your liability, but don't want to expend the effort needed to form an LLC, a partnership can be an excellent choice. When you're starting a new business, several important factors must be considered. This includes how your company will be structured. Choosing the correct structure for your business is an important decision and requires weighing several issues, including your startup needs and your business's future growth potential.

Flexibility is an important issue to think about when structuring your business. Where do you see your company in a few years and will the structure you have chosen allow your business to expand in the way that you desire? You should study your business plan and use the information that it contains to structure your business.

The structure you choose should support future growth, not hinder your company from expanding. You should also consider the complexity of any business structure you are choosing.

Sole proprietorships and general partnerships are very simple business structures that can be easily formed. Unlike corporations and limited liability companies, they are not subject to many rules and regulations.

If you're running a small business, selecting a simple business structure is almost always the best choice. Personal liability should also be taken into account when structuring your business. With some types of business structures, you'll be completely liable for the debts of your business, and with others you'll receive liability protections that will shield your personal assets from lawsuits filed against your company. Corporations, limited liability companies, limited liability partnerships, and limited partnership all offer liability protections, whereas general partnerships and sole proprietorships provide no protections.

Finally, you need to think about how your business will be taxed. Some business structures offer beneficial pass-through taxation, such as limited liability partnerships, and other structures will subject you to double taxation.