This includes law and medical firms. Forming a partnership may be the answer for many businesses, especially those that require more initial capital than one person can raise alone. Several types of arrangements can be made with a potential partner. For example, not all partners want to have equal ownership and responsibility. They may desire to be limited partners.
Most limited partners invest in a business.
They do not have a voice in management. Another type of ownership is the corporation. Sole proprietorships outnumber corporations in the total number of US business. But in the number of dollars earned and people employed, the corporation is the largest form of business organization in the United States today. The corporation is chartered by a state and is characterized by three or more owners.