Partnership Corporation Definition
Understanding the partnership corporation definition is essential when choosing a business structure for your startup.3 min read
In a partnership, a business is owned by two or more individuals. The profits and losses (including liabilities) are shared equally among the partners. Just like sole proprietorships, partnerships are easy to set up and run. However, the partners are personally responsible for the business debts and liabilities incurred by the partnership. The partners may disagree on how to run the business, which could cause disputes and lawsuits.
This is a type of business structure that is owned by shareholders. It is a separate legal entity and is much more difficult to set up and run than sole proprietorships and partnerships. Larger businesses favor corporations over other types of business structures.0px;" class="adsbygoogle">