What is a business partner?

A business partner is a person or commercial entity which has some kind of alliance with another person or commercial entity. In a partnership, partners could be people who agree to cooperate in order to advance their common (mutual) interests.

What is a partnership & how does it work?

Partnerships outline and clearly define a business relationship and responsibility. Unlike LLCs or corporations, however, partners are personally held liable for any business debts of the partnership, which means that creditors or other claimants can go after the partners' personal assets.

What are the different types of partners?

The most common type of partner is a general partner, who actively manages and exercises control over the business operations. Limited partners have limited legal liability. This type of partner cannot manage or exercise control over the business.

How many partners can a business have?

Choosing a partner or multiple business partners is the first step to forming a partnership. Under the Partnership Act 1890, the typical maximum number of partners in a single business is 20, with exceptions in specific industries such as law and accountancy.