Navigating Liability in Partnership Key Considerations
Understanding Liability in Partnership
Partnerships are a common form of business structure, offering flexibility and shared responsibility among partners. However, with this shared responsibility comes the potential for liability. Navigating liability in partnership requires careful consideration of key factors to protect both the business and individual partners.
Types of Partnership
Partnerships can take various forms, including general partnerships, limited partnerships, and limited liability partnerships (LLPs). Each type of partnership carries different levels of liability for partners. In a general partnership, for example, partners have unlimited personal liability for the debts and obligations of the business. In contrast, in an LLP,
