This business structure is formally known as a "general partnership", but is occasionally referred to as DBA (doing business as), Trade Name or Business Name. In a partnership, two or more people or corporations combine their talents and resources to conduct business. Responsibility for all aspects of the business is usually shared among the partners, regardless of the amount of capital contributed by each individual.
Normally, each partner can be held personally responsible for all liabilities brought about by the partnership, regardless of the amount they invested. The common term for this arrangement is called "jointly and severally" liable.
General partnerships are formed by a relatively straightforward written agreement between the partners. A partnership may also be considered to be formed through the actions of the people involved.
Partnerships rely on the continued membership of the partners. In the case of a two-person partnership, if one of the partners dies or declares bankruptcy, the partnership is normally dissolved.