Types of Partnerships in USA

GP’s are easy and inexpensive to form.

Minimum 2 partners are required.

Partners play an active role in the management and share responsibility for debts, profits, losses.

Partners are liable for business lawsuits.

Minimum 2 partners are required.

One or more partners are not taking an active role in the business’s management  Limited Partner

Limited partners are not responsible for business debts exceeding their initial investments.

At least one partner actively maintaining management and operations

General Partner has unlimited liability.

The amount of liability is limited to partners' investment in the business,

Each partner can take a role in the business’s management

Professionals such as lawyers, accountants, and dentists often prefer forming LLPs

Quasi-corporate structure - blend of partnership and corporation.

Owners maintain business’s management

Owners are not personally liable for business debts or liabilities.

Generally, there’s a limited purpose of accomplishing a specific task.

Gathers companies to unite their experiences&resources.

Each participant is responsible for profits and losses

Hold owners, directors, and officers.

Owners taxed separately.

Owners’ liability is limited with their investment to the business.

Hold owners, directors, and officers.

Requirement of not having more than 100 shareholders consisting of natural persons.