Glossary
Partnership
A partnership is a business carried on by two or more people who share its profits, losses, and management. In a general partnership each partner is personally liable for the partnership's debts, and the income is taxed in the hands of the individual partners rather than the partnership itself. It is relatively simple to form, but the shared personal liability pushes many partners toward incorporating once the business grows. We compare the unincorporated and incorporated routes in our sole proprietor versus incorporation guide.
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