Partnership

« Back to Glossary Index

A Partnership is a business arrangement where two or more individuals share ownership, profits, and responsibilities. Unlike an LLC, a general partnership does not offer limited liability protection, meaning owners’ personal assets can be at risk. Many partnerships eventually convert into LLCs to gain liability protection while maintaining pass-through taxation. Understanding how partnerships differ from LLCs helps entrepreneurs choose the best structure for their business goals.

« Back to Glossary Index