Most typical form. Unincorporated business has sole owner, who takes full responsibility. Can be a part-time operation in which the owner is the only person involved or it can be a large enterprise with many employees and hired managers. Owner supplies all or substantial part of the startup and operating capital. Owner has unlimited business risk.
Owners can be individuals, trusts, other partnerships or corporations.
Partners pool capital and share profits. Policy and operating decisions made by a majority vote of partners. Profits or losses shared by partners in accordance with the terms of the partnership agreement. Legally incorporated under State laws. Buy or sell goods or services.