Partnership

A Partnership is a business that is owned by two or more persons.   The partnership is a voluntary agreement between the persons owning the business.  The partnership agreement usually specifies how the profits or losses of the business will be distributed to the partners each year. The agreement also usually indicates the business settlement in the event a partner passes away.

As is the case with sole proprietorships, a partnership is often used for small businesses such as retail stores and professional practices such as accounting, financial advisors, law and medicine.  The owners of a partnership are personally responsible for all liabilities and debts incurred by the business.