What are the different types of partnership structures?

What are the different types of partnership structures?

There are several types of partnership structures, including general partnerships, limited partnerships, and limited liability partnerships. Would you like to know more about each type?

Yes, please explain general partnerships.

In a general partnership, all partners share equal responsibility for managing the business and are personally liable for its debts. This structure is simple to set up and allows for direct involvement in decision-making.

What about limited partnerships?

A limited partnership consists of at least one general partner who manages the business and one or more limited partners who invest but have limited liability. Limited partners typically do not participate in day-to-day operations.

And what is a limited liability partnership?

A limited liability partnership (LLP) protects each partner from personal liability for certain debts and obligations of the partnership. This structure is often used by professionals like lawyers and accountants.