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Partnership. A partnership is the absolute worst entity you could possibly be involved with from an asset protection standpoint. With a partnership, you get all the headaches and personal liability of a sole proprietorship with the additional twist of having a partner who can cause you even more liability.

Definition: A partnership exists when two or more people run a business together that is not a “corporation” (like S- or C-Corp or LLC or P.C.).

Consequences of being a Partnership—Every partner is liable for all the actions and debts of the other partners (as it relates to the business).