What Are Three Different Kinds of Partnerships and How Do They Differ?

The three kinds of partnerships are general partnership, limited partnership and limited liability partnership.

These three differ from each other as follows:

In a general partnership, all the share duties and all are liable for the business debts. Whereas, in a limited partnership, at least one partner is found to be not involved in any business decisions regarding the day to day operations.

The role of that partner is to provide a part of capital to the business. In a limited liability partnership, the partners are having limited liability to the extent of their contribution in the business and are not responsible for other partners’ debts.

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