A partnership is a business owned by two or more people. Each partner contributes to the business. In return, each partner shares the profits and losses. The owners need to develop a legal partnership agreement to document how the business will be run.
General Partnership: Each partner equally shares ownership. A General Partnership is not required to be registered with the Secretary of State, however doing so can make future business changes easier. A general partnership can last only five years.
Limited Liability Partnership (LLP): Partners share all benefits and liabilities of ownership but to varying degrees. You must register your LLP if conducting business.
Limited Liability Limited Partnership (LLLP): General partners manage the LLLP, and the limited partners' interest is purely financial. You must register your LLLP if conducting business.
Before setting up a partnership, you should seek advice from a lawyer or other business professional.
For more information on Partnership select the STARTING A BUSINESS link to access the New Mexico Economic Development Department. The link will take you to the Business Resources Center. Scroll down the page and select the Structuring a Business link. Scroll down to Partnerships.
For additional information on Partnership structures, select the CHOOSE YOUR BUSINESS STRUCTURE link, which will take you to the U.S. Small Business Administration web page.