Types of Partners
When starting a business, many entrepreneurs decide to form partnerships. A partnership, also known as a shared business, is a company that has more than one owner. Each of these owners has their own specific duties, and depend on the type of partnership that is established as well as the preference of each individual partner.
It is important to know which type of partner your business needs. In addition, those who are seen as potential partners may prefer a certain role in the company. There are variations in liability and responsibility that different types of partners can have.
The lowest level of partners is the senior partners, junior partners, and associated partners. These partners vary among duties and responsibility, and each level requires altered training and certification. These lower levels of partnership are different for every business, depending on specific needs.
A managing partner is one who has the responsibility of running the day to day financials, legal, and human resources functions. This person typically is known for the overall running of the business. The managing partner works on behalf of the partnership but does not usually have higher liability and responsibilities, such as signing legal documents.
In a partnership, a general partner is one who completes daily tasks and is also responsible for specific liabilities of the business. A limited partner, on the other hand, is does not participate in the operations of the company but does have part ownership in the business. This limited partner is often not seen by the actual company employees and assists in no way. This partner is known for their partiality, as they are typically just needed for their investment in the company. This can be useful for companies that need money but not assistance as well as individuals who want to contribute but do not have the time or resources.