Types of Partnership

• General Partnership
• Limited Partnership
• Limited Liability Partnership
• Public Private Partnership
General Partnership
 General Partnership

• Partnerships are the most common type of

business structure for businesses with more than
one owner. In return, each general partner shares
the business profits. However, general partners
also share the business' liabilities and losses
Advantages of a General Partnership :
• Businesses as partnerships do not have to
pay income tax; each partner files the profits or
losses of the business on his or her own
personal income tax return. This way the business
does not get taxed separately. Easy to establish.
 Limited Partnership

A limited partnership is a form

of partnership in which some of
the partners contribute only financially and are
liable only to the extent of the amount of
money that they have invested. In a limited
partnership structure, limited partners are
shielded to the extent of their investment.
 Advantages of a Limited Partnership:

• The main advantage for limited partners is that

their personal liability for business debts
is limited. A limited partner can only be held
personally responsible up to the amount he or
she invested. Limited partners enjoy a
protected investment, knowing they cannot
lose more money than they've contributed
 Example…..
• An example of a business activity
where limited partnerships are frequently used
is in real estate development or in the film
industry. In the Real Estate scenario, general
and limited partners come together to work on
a short term project, a construction job.
Limited Liability Partnership
 Limited Liability Partnership

A limited liability partnership (LLP) is

a partnership in which some or all partners
(depending on the jurisdiction) have limited
liabilities. It therefore can exhibit elements
of partnerships and corporations. In an LLP,
each partner is not responsible or liable for
another partner's misconduct or negligence.
 Advantages of LLP
This includes debts, liabilities and the wrongful
acts of other partners. One advantage of a
limited liability partnership is the
liability protection it affords. This type of
partnership structure protects individual
partners from personal liability for the
negligent acts of other partners in the LLP.
Examples : licensed financial advisers,
physicians, attorneys, accountants
Public Private Partnership
 Public Private Partnership
Public-private partnerships involve
collaboration between a government agency
and a private-sector company that can be
used to finance, build, and operate projects,
such as public transportation networks,
parks, and convention centers. Financing a
project through a public-private partnership
can allow a project to be completed sooner
or make it a possibility in the first place.
 Advantages
• They provide better infrastructure solutions
than an initiative that is wholly public or
wholly private. ...
• They result in faster project completions and
reduced delays on infrastructure projects by
including time-to-completion as a measure of
performance and therefore of profit
 Example
• Public-private partnerships are typically found
in transport infrastructure such as highways,
airports, railroads, bridges, and
tunnels. Examples of municipal and
environmental infrastructure include water and
wastewater facilities.
 Sole proprietorship
• A sole proprietorship, also known as the sole
trader, individual
entrepreneurship or proprietorship, is a type of
enterprise that is owned and run by one person and
in which there is no legal distinction between the
owner and the business entity.
• A sole trader does not necessarily work 'alone‘ it is
possible for the sole trader to employ other people.
The sole trader receives all profits and
has unlimited responsibility  for all losses and debts
 Advantages of sole trading include that:

• You're the boss.

• You keep all the profits.
• Start-up costs are low.
• you have maximum privacy.
• Establishing and operating your business is simple.
• It's easy to change your legal structure later if
circumstances change.
• You can easily wind up your business.