The Difference in Business Partnerships

A business partnership is formed when individuals co-own a business and make a profit. In order to form a partnership, all parties involved must intend to move forward as co-workers to make their business money. There are several types of business partnerships, each with its own set of regulations. 

Before jumping into a business partnership, it is best to contact an M&A attorney in Miami for legal advice. Lawyers at Alvarez & Diaz-Silveira are ready to help you understand the terms of your partnership. You can request a consultation online or by calling us. 

Here are a few common types of business partnerships:

  • Limited partnerships: include two partners, where one must be a general partner (the one responsible for daily operations and management decisions). Limited partners are only responsible for the investment duties and have limited authority in their partnership. They are only liable for debts totaling the amount of money they have invested in the partnership. 
  • General Partnership: the most common form of partnership, where all partners share profits, losses, and liabilities. A general partnership may require all individuals in the partnership to be responsible for debts and liabilities. 
  • Limited Liability Partnership: a form of a limited partnership, of which additional protections occur. This also has a general partner and other limited partners. The difference is that the general partner is not held personally responsible for debts from the partnership, negligence, or misconduct from other general partners. 

Before forming a partnership, understand your legal rights and obligations. Consult with a corporate law firm in Miami to get the best understanding of the scope of the responsibilities of your partnership.