When running a business there are a few types of partnerships to choose from. The first type is an equal partnership where there is equal responsibility between all owners of of operations, its debts, and its profits. A limited partnership is where one partner has less obligations, usually its determined by how much was invested. A silent partnership is where an owner helps to invest, receives dividends from business, but has no say. Lastly, depending on what each owner invested, each party has some sort of equity in the business.
- Business partnerships are beneficial for a business if both partners are committed.
- There a four different types of partnerships limited, silent, equity, and equal.
- The five key traits for a successful partnership are shared vision, trust, similar culture, complementary strengths, and adaptability to changes.
“Choosing the right type of partnership can be tricky and depends on what both parties want to achieve from the relationship.”