Getting Started - Legal Structure
Types of Partnerships

Types of Partnerships

Are there specific types of partnerships?

Yes. This is especially true if the partners are unequal in some way. Examples are:

•Ostensible partner
Active and known as a partner

•Active partner
May or may not be ostensible as well

•Secret partner
Active, but not known or held out as a partner

•Dormant partner
Inactive and not known or held out as a partner

•Silent partner
Inactive, but may be known as a partner

•Nominal partner
Not a true partner, but can be represented in name or by some other representation

•Subpartner
Not a member of the partnership, but contracts with a partner to participate in the interest of such partner in the firm’s business and profits

•Limited partner
Assuming compliance with the statutory formalities, the limited partner risks only his or her agreed investment in the business