The Evolution Of The Partnership As A Business Vehicle

At its most basic level a partnership requires no formalities or registration and is the simplest manner in which to carry on a business. Partnerships have been used for many centuries and were initially governed by common law rules that evolved to regulate both the dealings of the partnership with third parties, and the dealings of the partners with one another. These rules were largely codified in England by the Partnership Act 1890 (the "1890 Act").

In addition to simple partnerships ("General Partnerships") other forms of partnership have evolved; the limited partnership was established in England by the Limited Partnership Act 1907 (the "1907 Act") and more recently the limited liability partnership has become common in various jurisdictions including the UK. Although the names are confusingly similar, the limited partnership ("Limited Partnership") and limited liability partnership ("LLP") are very different vehicles, as explained in more detail below.