A partnership is defined as - an association of two (2) or more persons to carry-on as co-owners of a business for profit. Two common types of partnerships are a General Partnership and a Limited Partnership. You can enter into a general partnership by making an oral agreement with another individual. However, a more formal written agreement outlining each partners' rights and duties is advisable. This is a more costly venture than a sole proprietorship. A limited partnership is formed when two or more individuals contribute capital to the business but agree that partnership liability is limited to the proportionate share of their investment while the other partners assume greater liability and operate the business. It is important to note that in both types of partnerships, the operating partners' personal assets are not protected from creditors of the business. Advantages are: More partners mean more sources of capital. More partners mean more individuals to help run the business. May be tax advantages to partners of planning income/loss to suit their needs. Each partner is an agent of the partnership for business purposes. Disadvantages are: In both a general and limited partnership, at least one or more partner's personal assets are liable to the creditors of the business. Partners are jointly and severally liable for most wrongdoings for which the partnership is liable and jointly liable for all other debts and obligations. The business may be dissolved by the death of any one partner. It may also be difficult to end a partnership.