Partnership Business refers to a legal form of business operation set-up by two or more individuals who share the ownership, profits as well as the responsibilities for managing the company.
In a Partnership business, You are not the sole owner of the profit. You add your fund to the development while expecting the profit. The profit is being shared among the partners.
However, all partners share liabilities as well as profit equally. They are all responsible for the loss and gain that may occur.
TYPES OF PARTNERSHIP BUSINESS
1.General Business: This is the basic form in which each partners are responsible for the gain or loss of the business. All partners have the capability to influence the business , to make recommendations and possible changes. They personally responsible for all the business debts. However, it doesn’t require forming a business entity with the state.
2. Limited Partnership: They invest in the business for financial returns but are not responsible for the debts. Compared to General type in Limited, it requires formimg a business entity with the state. The team comprises of at least one general, then two or more Limited type.
A similar type is the silent partner whereby he/she contributes to the business but not visibly involved in the day-to-day operations.
3. Limited Liability Limited Partnership (LLLP): This also operates like LP, It has one General type. This type of business operates in some states which makes it unsuitable for businesses that works in multiple states.
LLLPs are currently authorized and legalized in some states like California, Texas, Virginia e.t.c.
4. Limited Liability Partnership(LLP): It operates like the General type of business as well. All partners are responsible for authorized actions or liabilties of the business but are not responsible for the personal individual mistakes. It is important to note that LLPs are not yet allowed in all states and also restricted to some professions.
Partnering with a company is an effective way to build partnership in business. Because experiences and ideas would definitely be shared amongst parties. Credits to financialyard.com and profit.co for the image above.
THINGS TO NOTE ABOUT PARTNERSHIP BUSINESS
· Be Honest in your dealings: This is a quality that all workers should possess. It helps to realise better production and harness the strength of the company.
· Set a clear goal: If a goal is set for an organization, it is now important that that goal is broken down into modules for a quick achieving process. Every partner must be with a goal that will span for a long time.
· Make your partner comfortable: This means that as the team lead of a company, any other partners associating with you should be welcomed, their ideas and opinions should not be shut down.
· Let the partnership grow: Giving the partnership room to develop is what determines its progress. It is important progressive ideas are applied as well as use of technologies to make a progress on the business.
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You can learn some of these by registering at www.bincom.net/academy . This is one of the best platform to join to get the right knowledge.