What is it ?

• It is a type of business organization , where the owners have unlimited personal liability for the actions of the business
• A partnership needs to maintain a separate partnership account , which can be either shared by partners or could be separate accounts for each partner
• It does not pay income taxes. Instead, the various partners report their share of the partnership's profit on their their personal income tax returns.

A business would have a general partner along with other limited partners , in a limited liability partnership

Why become a partner ?

• To share the right to make business decisions net profits and losses.
• With a partner you will have someone to share ideas with and divide the day-to-day responsibilities, and ideally someone whose skills and interests complement yours, strengthening the company.

The partners together are referred to as the firm . Firm is not a separate entity ,as in a corporation and are hence liable for everything .

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This is better in the eyes of an investor , only compared to sole proprietorship , because now there are more proprietors .