From a business perspective, the concept of a partner has multiple definitions. They are:

  • A member of a partnership. A partnership is a form of business organization in which owners have unlimited personal liabilities for the actions of the business. The members in the partnership share proportionally in any profits generated by the business. There may also be limited partners who also share in the profits, but whose liability only extends to the amount of funds they have invested in the business.
  • A business partner. This could simply be the co-owner of a business, irrespective of the legal form of organization of that business. Alternatively, a business partner could be a corporation or other business entity that is acting with other entities to operate another business. This relationship may not be considered a partnership under the legal definition of the term, but a co-owner would be considered a partner.
  • A title. One who shares in the proceeds of a law firm, accounting firm, consultancy, or similar organization is generally given the title of partner. The business itself may or may not be organized as a partnership.

Related Courses

Law Firm Accounting 
Partnership Accounting 
Partnership Taxation