The first thing you need to know about establishing a partnership type of business is that there are three general categories for this business structure.

First we have General Partnership. Known as the simplest type of partnership in business, a Generap Partnership entails that all the facets of the business (i.e. revenue, official duties, liability, and more) are equally distributed among its members. If unequal distribution occurs, the General Partnership requires that the members have it in writing.

Limited Partnerships on the other hand is a form of partnership that allows for one or more limited partners in addition to the general partner(s).  It’s a lot more complicated than having a General Partnership. A Limited Partnership factors in input, management decision, and limited liability. The limits may vary depending on how much the members have invested in the business.

Joint Ventures, also known as JVs, Joint Ventures are usually temporary and are only set up by parties who intend to work together for a specific project or event. Once the project has passed, the JV is dissolved.

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