So what’s a partnership? Two or more people own a partnership, and there are several types of partnerships. Generally, all partners face personal liability for all debts and obligations, but specified “limited” partners, as in a “Limited Partnership”, face the loss of only their capital contributions, while the general partner(s) faces any and all debts and liabilities. The partnership entity does not get taxed. But the partners themselves are taxed much like an individual. Partnerships do, however, avoid the double taxation of corporations.