Types of Partnerships in USA

En son güncellendiği tarih: Mar 24



General Partnerships (GP)

  • GP’s are easy and inexpensive to form.

  • Minimum 2 partners are required.

  • Partners play an active role in the management and share responsibility for debts, profits, losses.

  • Partners are liable for business lawsuits.

Limited Partnerships (LP)

  • Minimum 2 partners are required.

  • One or more partners are not taking an active role in the business’s management Limited Partner

  • Limited partners are not responsible for business debts exceeding their initial investments.

  • At least one partner actively maintaining management and operations

General Partner

  • General Partner has unlimited liability.

Limited Liability Partnerships (LLPs)

  • The amount of liability is limited to partners' investment in the business,

  • Each partner can take a role in the business’s management

  • Professionals such as lawyers, accountants, and dentists often prefer forming LLPs

Limited Liability Companies (LLCs)

  • Quasi-corporate structure - blend of partnership and corporation.

  • Owners maintain business’s management

  • Owners are not personally liable for business debts or liabilities.

Joint Ventures (JV)

  • Generally, there’s a limited purpose of accomplishing a specific task.

  • Gathers companies to unite their experiences&resources.

  • Each participant is responsible for profits and losses

C Corporations

  • Hold owners, directors, and officers.

  • Owners taxed separately.

  • Owners’ liability is limited with their investment to the business.

S Corporations

  • Hold owners, directors, and officers.

  • Requirement of not having more than 100 shareholders consisting of natural persons.



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