Business partnerships can be incredibly lucrative, but they need to be established in such a way that everyone benefits. If you have questions about starting or managing a partnership, a business attorney from Zangari Cohn Cuthbertson P.C. will help. They have convenient offices in Warwick, RI, and New Haven, CT, and are proud to serve clients throughout the New England area.

What are the 3 Types of Partnerships?

1. General Partnership

In a general partnership, all of the business partners are actively engaged and involved in the management of the company. This is the most common type of partnership, and under business law, all partners in a general partnership are liable for the company’s debt and losses.

2. Limited Partnership

In a limited partnership, there are both general partners and limited partners. The general partners share in the managing of the business while the limited partners simply invest in it. Thus, limited partners are not personally liable for the company’s losses beyond their initial investment. Limited partners who wish to be more involved in the day-to-day operations can become general partners if they accept additional liability. 

3. Limited Liability Partnership

A limited liability partnership is a partnership composed of professionals in a specific industry. For example, a team of doctors might decide to open a practice together and in so doing would form a limited liability partnership. In such a partnership, the members are only liable for their own debts or losses and not those incurred as a result of the other partners’ negligence.

If you want to establish a business partnership, an attorney from Zangari Cohn Cuthbertson P.C. will ensure you do not make any mistakes that compromise your interests. Visit their website to learn more about their experience in business acquisition law, and call (203) 789-0001 to schedule an initial consultation with an attorney today.