A Partnership is formed when two or more people join to establish a business. Partnerships are also easy to form, but they are taxed differently than a sole proprietorship. Similar to a sole proprietorship, a partnership does not provide the partners with liability protection.
Limited Liability Partnerships are composed of two different types of partners (1) general and (2) limited. General partners are involved in the management of the business and bear all the risk of running the business. In contrast, limited partners invest in the business, but bear minimal or no risk in the running of the business. Limited partners share in the profits and losses as set forth in the partnership agreement.
 For more information regarding the taxation of these business entities, please consult your CPA or Accountant.