There are four types of partnerships. The partnership type you choose will depend on what best suits the partners involved.
General Partnership (GP)
All partners involved will be equally responsible for the management of the business. Each member has unlimited liability (personally liable) for the debts and obligations that the business incurs.
Limited Partnership (LP)
Liability of partners is limited to the amount of money they contributed to the partnership. Limited partners tend to be ‘passive’ investors who don’t play a role in the day to day management of the business.
Incorporated Limited Partnership (ILP)
ILP partners have limited liability for the debts of the business. However, there must be at least one partner with unlimited liability. If the business is failing to meet its obligations, then the general partner (or partners) will become personally liable.
Choose a business by discussing what and how each partner can contribute. Based on this, choose a structure which accommodates these differences.