A Partnership is a legal agreement between two or more people who share ownership of a business.  As with a sole proprietorship, there is no separation between the business and its owners:  profits and debts (liability) are the shared responsibility of the partners.  While not required, it is always advisable to have a formal, legal contract drawn up between the partners to define how decisions will be made, how profits (and losses) will be shared, how future partners will be brought in, etc.  It is also a good idea to establish how things will be handled in the event that the partnership needs to be dissolved.
 
 
Note:  Please consult with your legal and financial counsel prior to establishing your business structure in order to ensure proper compliance with applicable rules and laws.
For more detailed information about this type of business structure including how to set up your business structure, tax information and more, please join StartUpPuppy.com.