- 1+ Owners to make management decisions
- Liability - (Personal, Unlimited, Joint/Several)
Conflict & Written Agreements
If 2 people start a business, mostly there will be conflict between ideas. Then, written agreements should be signed dictating:
- How much $ invested
- What each partner gets to do
- How much each partner gets paid
- How profits are split
Types
General Partners
The partners have the same power over the business. Written agreements are not mandatory, but advised so that conflicts do not happen
Limited Partnership
A partner that:
- Must sign written agreement
- Has no part of managing business
- Has Liability (Limited)
- Is only responsible for supplying some money
- Can only lose the money they supplied Usually these partners are already retired, and you just use their money to help kick start the business.
Good for when the entrepreneur has experience, expertise but not capital.