Business versus partnershipAccording to section 1 of the Partnership Act of 1890, a partnership is "the relationship which subsists between partners carrying on a business jointly in with a view to making a profit. The creation of a Partnership can be done verbally. However, in most partnerships, the partners prepare a written agreement called the Articles of Partnership, Partnership Deed, or Partnership Agreement. The agreement concluded between the partners determines the rights and obligations of each partner as well as the functioning of the partnership. Furthermore, the agreement can be amended at any time through mutual understanding between all partners. Moreover, in case of partnership, there is no separate legal existence and the partners are equally liable for all debts. It is important to note, however, that partnerships in Scotland differ from the rest of the UK and are legal entities, so partners can bring and be sued on behalf of the business (HMRC, 2014). There are three types of partnership: “ordinary” partnership, limited partnership and limited liability company. In the limited liability partnership (LLP), the partners are not personally liable for the debts of the business, while in the limited partnership, the liability is unevenly distributed among its partners who only pay up to the amount that they owe. 'they initially invested in the company (GOV.UK, 2014).The main differences between partnership and a company are that the company must be registered under the Companies Act 1956 whereas partnership registration does not is not obligatory. As mentioned above, partnership, unlike corporation, is not a separate legal entity but a group of people. When it comes to the minimum and maximum number of people involved in the partnership and business, there are also differences. In...... middle of paper ...... with. The majority of companies use standard statutes, but they can be changed or adapted as long as the company is not breaking the law (GOV.UK, 2014). The limited liability company agreement does not need to be registered with the companies. House and there is no document comparable to the model articles which would define the standard articles as in the case of a limited liability company. It is, however, in the best interest of each member of an LLP to create an agreement that will cover the most important issues when running a business. Some of these issues that should be included cover: equal shares, involvement in management, no remuneration, member consent required for new members, decision making, access to books and records, the obligation to account for the profits of competing companies, the obligation to account. for profits gained, unfair harm, etc...