A legal partnership is a business structure where individuals or entities collaborate, share profits and losses. Legal relationships define partnerships, outlining roles, responsibilities, and contributions. Common types include general and limited partnerships. Key characteristics:
General Partnership:
All partners have equal management authority and share day-to-day operations and decisions.
Profits and losses are usually shared equally.
Unlimited personal liability for debts and legal obligations.
Relatively easy to form, it is advisable to have a written agreement.
Limited Partnership:
Includes general and limited partners.
General partners manage the business and have unlimited liability.
Limited partners contribute capital, have limited involvement, and enjoy limited liability.
Require compliance with legal requirements and partnership agreement terms.