Partnerships. A Partnership is a business venture owned by two or more individuals who are jointly and personally liable for the venture’s liabilities. With Joint Liability legal action treats all partners equally as a group. Joint and Several Liability allows subsets of partners to be the object of legal action related to the partnership. This is an okay structure for certain types of ventures, but I still prefer having your company be less tied to yourself as an individual.Limited Partnership. A Limited Partnership allocates liabilities in a partnership to the amount of each partner’s equity capital contribution to the partnership. This means that if you own 50% of the company, you have the burden of 50% of the liabilities, and the remainder are allocated to your partners pro rata based on their ownership percentage. Better, but still too personal for my taste!To get great tools on how to create a strong foundation for your business’ future, feel free to join my Facebook Group, Business Renegades: CEO Freedom Fighter
CEO of Mighty Ventures, Inc.
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