A partnership is an arrangement where entities and/or individuals agree to advance their business interests together. In the most frequent instance, partnerships form among businesses that share in the work and in the profits and losses.
Business partnerships have a tax advantage over the formal corporate business structure. Taxes on a partnership's profits come before distribution to owners, unlike a C-Corp in which owners pay taxes on their dividends.
Depending on the partnership structure and the jurisdiction in which it operates, owners in a partnership may be exposed to greater personal liability than they would as shareholders of a corporation.