Partnership

A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits. There are several types of partnership arrangements. In particular, in a partnership business, all partners share liabilities and profits equally, while in others, partners may have limited liability. Each person contributes money, property, labor or skill, and shares in the profits and losses of the business. Another way of putting it is that a business partnership is a formal arrangement (a legal relationship) between two or more parties to manage and operate a business and share its profits or losses.