TYPES OF PARTNERSHIP

These are the four types of partnerships.

1. General partnership

2. Limited partnership

3. Limited liability partnership

4. Limited liability limited partnership

General partnership
 A general partnership is the most basic form of partnership. It does not require forming a
business entity with the state. In most cases, partners form their business by signing a
partnership agreement.
 Ownership and profits are usually split evenly among the partners, although they may
establish different terms in the partnership agreement.
 In a general partnership, all partners have independent power to bind the business to
contracts and loans. Each partner also has total liability, meaning they are personally
responsible for all of the business's debts and legal obligations.
 That's a lot of power and a lot of mutual responsibility. For example, say a general
partnership has three partners. One of the partners takes out a loan that the business
cannot repay. All partners may now be personally liable for the debt.

 General partnerships are easy to form and dissolve. In most cases, the partnership dissolves
automatically if any partner dies or goes bankrupt.

Limited partnership
 Limited partnerships (LPs) are formal business entities authorized by the state. They have at
least one general partner who is fully responsible for the business and one or more limited
partners who provide money but do not actively manage the business.
 Limited partners invest in the business for financial returns and are not responsible for its
debts and liabilities.
 This silent partner limited liability means limited partners can share in the profits, but they
cannot lose more than they've invested. In some states, limited partners may not qualify
for pass-through taxation.
 If they begin actively managing the business, they may lose their status as a limited partner,
along with its protections.
 Some LPs appoint a limited liability company (LLC) as the general partner so no one has to
bear unlimited personal liability for the business. That option may not be available in all
states, and it's much more complicated than an LP.
Limited liability partnership
 A limited liability partnership (LLP) operates like a general partnership, with all partners
actively managing the business, but it limits their liability for one another's actions.
 The partners still bear full responsibility for the debts and legal liabilities of the business,
but they're not responsible for errors and omissions of their fellow partners.
 LLPs are not permitted in all states and are often limited to certain professions such as
doctors, lawyers, and accountants.

Limited liability limited partnership

 A limited liability limited partnership (LLLP) is a newer type of partnership available in
some states. It operates like an LP, with at least one general partner who manages the
business, but the LLLP limits the general partner's liability so all partners have liability
protection.
 Because they aren't recognized in all states, LLLPs are not a good choice if your business
works in multiple states. In addition, their liability protections haven't been tested
thoroughly in the courts.

Partnership at Will
When forming a partnership if there is no clause about the expiration of such a partnership,
we call it a partnership at will. According to Section 7 of the Indian Partnership Act 1932, there
are two conditions to be fulfilled for a partnership to be a partnership at will. These are
 There is no agreement about a fixed period for the existence of a partnership.
 No provision with regards to the determination of a partnership
So if there is an agreement between the partners about the duration or the determination of
the firm, this will not be a partnership at will. But if a partnership was entered into a fixed
term and continues to operate beyond this term it will become a partnership at will from the
expiration of this term.

Partnership for a Fixed Term

 Now during the creation of a partnership, the partners may agree on the duration of this
arrangement. This would mean the partnership was created for a fixed duration of time.
 Hence such a partnership will not be a partnership at will, it will be a partnership for a
fixed term. After the expiration of such a duration, the partnership shall also end.
  However, there may be cases when the partners continue their business even after the
expiration of the duration. They continue to share profits and there is an element of
mutual agency. Then in such a case, the partnership will now be a partnership at will.

Particular Partnership
 A partnership can be formed for carrying on continuous business, or it can be formed
for one particular venture or undertaking. If the partnership is formed only to carry out
one business venture or to complete one undertaking such a partnership is known as a
particular partnership.
 After the completion of the said venture or activity, the partnership will be dissolved.
However, the partners can come to an agreement to continue the said partnership. But
in the absence of this, the partnership ends when the task is complete.