• Partnership: A Partnership is a type of business entity in which partners share with each other the profits or losses of the business undertaking in which all have invested.

    In Connecticut, a partnership is an agreement between individuals who, in a spirit of cooperation, agree to carry on an enterprise, contribute to it, by combining property, knowledge or activities and to share its profit. Partners may have a written agreement which may or may not be registered and available for public inspection. Generally, a partnership offers less liability protection than the Corporation or the Limited Liability Company.

    Partnerships are often favored over corporations for taxation purposes, as a partnership structure eliminates the dividend tax levied upon profits realized by the owners of a corporation.

    The most basic form of partnership is a general partnership in which all partners manage the business and are personally liable for its debts. Two other forms which have developed in most countries are the limited partnership (LP), in which certain “limited partners” relinquish their ability to manage the business in exchange for limited liability for the partnership’s debts, and the limited liability partnership(LLP), in which all partners have some degree of limited liability.