What are the Different Forms of Partnerships?
In a general partnership, the partners divide responsibility for management, liability and their share of the business' profits or losses. Shares are assumed to be equal unless a written agreement states differently.
Limited Partnership and Partnership With Limited Liability
In these types of partnerships, most of the partners (to the extent of their investment) have limited liability, along with limited input in management decisions. While this can encourage and help obtain investors for short-term projects or for investing in capital assets, this form of ownership is not often used for operating service or retail businesses. Limited partnerships have a more complex and formal structure than general partnerships.
Joint ventures are similar to general partnerships, but the partnership is formed for a clearly defined or limited period of time or is formed for a single project.