Partnership

A partnership is a formal arrangement in which two or more individuals or entities agree to manage and operate a business together and share its profits and liabilities. The partners combine resources—such as money, skills, or property—and each partner typically reports their share of profits or losses on their individual tax returns (the partnership itself doesn't pay income tax directly). Common types of partnerships include general partnership (all partners share management and liability), limited partnership (one or more partners have limited liability and limited involvement), and limited liability partnership (all partners have some liability protection). Partnerships can be customized through agreements that outline decision-making, profit sharing, and roles.