Type’s of Partnership Models


Yesterday’s post discussed the point in the company formation process when a partnership strategy should be considered. Today we will review the different types of partnership models, their relative values and how to set one up.

In the partnership model, all partners equally share the financial costs and responsibilities of being in business. All partners are normally registered as self-employed and take a share of the profits. However, what share of profit each partner takes and their relative role in managing the business and personal responsibility for debt, depends on the type of partnership model a recently formed company decides to choose;

All partners share financial liability and profits equally. Equal responability is also taken for the day to day management of the business and future growth and development..

In a Limited partnership, partners accept limited financial liability relative to the amount they have invested. Tough profits are shared equally and usually Limited Partners have no role in the day to day management of the business.