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In business, a partnership is an arrangement between two or more people to cooperate in carrying on a trade or business. Each person contributes money, property, labor, or skill, and expects to share in the profits and losses of the business. The partners agree to share the profits, losses, and control of the business according to their ownership percentage.

Partnership law governs the internal operations of partnerships as well as the relationships between the partners and the partnership.

Members of a partnership "associate," establishing a collective association in which they all engage in management and profit sharing, are liable for the firm's debts and can be sued jointly and severally in regard to the firm's contracts or tortious conduct. All partners act as agents for one another and so have a contractual agreement with one another.

Partnership, under Scots law, is a legal entity that is distinct from the partners; thus, they can borrow money under the name of the partnership. In this case, English law only allows individuals to borrow money under their names. A partnership is a type of company that individuals engage in for-profit, according to the Partnership Act of 1890 British law.

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