What is partnership?
A partnership is an arrangement between two or more entrepreneurs to oversee business operations and share management and profits.
Partnerships help make your business more attractive, increase brand awareness and brand loyalty, and cut costs. Here’s a list of possible partnerships for
- sellers of related products
- sellers from other branches
- charity partners
- delivery services
- suppliers of materials and wrapping
- and even business rivals.
Read more about possible partnerships for online store owners and ideas for collaboration.
Partnership as a form of business
If your business will be owned and run by several entrepreneurs, you can structure your business as a partnership.
The most common types of partnerships are general partnerships and limited partnerships.
In a general partnership, partners own and operate the business and assume responsibility for the partnership’s debts and other obligations.
In a limited partnership, there are general and limited partners. The general partners own and operate the business and assume liability for the partnership. As for limited partners, they serve as investors only. They can’t control the company and they don’t assume responsibility for the same liabilities as general partners.