How many people typically own a partnership?

A partnership is a business structure where two or more individuals share ownership and management responsibilities. Typically, partnerships consist of 2 to 20 people. This range allows for a manageable number of partners, ensuring that decision-making can be efficient while also providing the benefit of shared resources and expertise.

Having more than 20 partners would likely complicate management and decision-making processes, which is why larger collaborations are usually organized as corporations rather than partnerships. Furthermore, while family members can certainly form a partnership, ownership is not limited solely to relatives; partnerships can include individuals from outside the family as well. This flexibility in membership further supports the understanding that a partnership generally involves a small, defined group of individuals.