A partnership is fairly simple to set up. Two or more people get together with the intent of going into business; they get the appropriate licenses and file the necessary papers with the State and you are in business. When the areas of expertise of these people compliment each other the situation is ideal. Although each partner is taxed on an individual basis they all are liable for the debts of the business.
The partnership is treated like a separate entity in some ways as it can own property and execute documents, however, when it comes to payment of taxes or debt liability the owners are responsible. When a partner dies the company must be dissolved. If the survivors want to continue the business they must form a new company.
