Partnership

A partnership is a type of business entity in which partners (owners) share with each other the profits or losses of the business undertaking. Partnerships are often favored over corporations for taxation purposes, as the partnership structure does not generally incur a tax on profit that is distributed to the partners (i.e. there is no dividend tax levied). However, depending on the partnership structure and the jurisdiction in which it operates, owners of a partnership may be exposed to greater personal liability than they would as shareholders of a corporation.