A partnership is a business owned by two or more individuals (partners) who share the business’s profits and losses based on their agreed-upon share of ownership. Partnerships are popular business structures because they’re quick and easy to form with little or no formal documentation required by law. There are three main types of partnerships to choose from: general, limited, and limited liability. 1. General Partnership (GP) In a general partnership, all partners share equal rights and responsibilities, and each partner can sign contracts on behalf of the business. The partners or non-partner managers (similar to a corporate board of directors) must obtain unanimous or majority agreement before making major decisions. Along with sharing profits and losses, partners assume unlimited liability for the debts and obligations of the partnership — known as joint and several liability. This means that if the partnership is sued because of the negligence of a partner, the other partner...