Small Enterprise
SMART BUSINESS PARTNERSHIPS Image Credit: Small Enterprise
SMART BUSINESS PARTNERSHIPS Image Credit: Small Enterprise

Smart Business Partnerships

A lot of business owners, be it small or large scale businesses, are hesitant to enter into business partnerships, as they believe it to be the kiss of death! But this is a myth and if done right, business partnerships can be highly profitable for the company involved.

Chaithra M D

A partnership in business is a certain type of legal agreement that is made between 2 or more persons for the purpose of handling a business. Each person in this kind of a legal relationship will be a co-owner of the specified business. Co-owners invest in the business and will be liable to lawsuits and debts if any. But there is more than one type of partnership that can make up a business.

Read on to know the different kinds of partnerships and then decide which one would suit your company best

General Partnership: This kind of partnership involves individuals who assume equal rights in the management and day-to-day operations of the business. These individuals will have the liability as co-owners for lawsuits and debts. There are many pros in such an agreement; the most important one being individual tax returns at a much lower rate.

Limited Partnership - In a Limited Business Partnership, the individuals involved in the partnership benefit from the profits but the losses they share is directly proportional to their investment in the business. And of course, there has to be at least one general partner/owner of the business.

Limited Liability Partnerships - A Limited Liability Partnership is one where the involved partner gets protection from personal liability due to the negligence of the other. They are shielded from the wrongful acts or losses that the business suffers because of the


Continue Reading with Magzter GOLD Subscription

Log in if you're already a subscriber

Continue Reading This Article For FREE By Downloading The Magzter App

Magzter for iOS Magzter for Android

To continue reading on the website, Click here

Get unlimited access to thousands of curated premium story and 5,000+ magazines

Try FREE for 7 days or

Download the Magzter App and
Try FREE for 30 days


More from Small Enterprise