There are generally two or more people involved in each form of partnership. Here are details for each main type of partnership regarding the number of people involved:
- General Partnership: Requires at least 2 people and can have up to 20 partners. Each partner shares equally in management and liabilities. There is usually no maximum for professional partnerships (e.g., lawyers, engineers), which can exceed 20 partners due to their specialized nature.
- Limited Partnership: Involves at least 2 people, including one or more general partners with unlimited liability and one or more limited partners whose liability is limited to their investment. There is no maximum number of limited partners.
- Incorporated Limited Partnership: A form of limited partnership used mostly for high-risk ventures, requiring at least one general partner with unlimited liability and other limited partners. Number of partners varies, but at least two are involved.
- Joint Venture: A temporary partnership for a specific project involving two or more people. It can become a more permanent partnership if continued.
In summary, in most common partnerships, a minimum of two people are involved, and the total can go up to about 20 for general partnerships, while limited partnerships can have many more limited partners without a fixed maximum. Professional partnerships may exceed these limits. This applies broadly across various jurisdictions as these references include Singapore, Australia, and general U.S. IRS definitions.
