Partnerships were a natural evolution as sole proprietor could not support multiple owners. Partnerships are more common in Legal Firms, where lawyers would combine their efforts under one firm, and allow multiple lawyers to become partners in the firm based upon certain conditions. Partners typically own an equally divided share the same percentages of the business liabilities, debts, and credits.
Each time a new partner is added the partnership, it alters the ownership equally.
LLC, Limited Liability Corporations, is a the most common new business entity created due to the ease of the formation, and the vast benefits in structure, allocations of shares, and debt protection.
