About this section
A Partnership is a very common form of business structure. A partnership is a relationship between two or more persons who have agreed to carry on a business in common with the view to profit. This does not necessarily require a formal agreement. A partnership is a popular business structure because unlike a company, it is not taxed as a separate entity, and there are no financial reporting requirements.
An important consideration when creating a partnership is that of joint liability. Partners are personally liable for the acts of their co-partners. This means that if one partner incurs a financial debt on behalf of the partnership, the other partner will be liable to pay that debt personally. Personal liability is liability that must be paid from not only partnership assets, but also personal assets, such as a family home.