Partnership – in the sphere of Corporate Law this term describes the body of legal business organization in which two or more persons carry on a business together. Business partners are fully liable for all the debts of the enterprise but they also share the profits exclusively. Many countries have legislation which regulates business partnerships and may, for example, require some form of registration and allow partnership agreements. One of the main advantages of partnerships is that they use to separate the liabilities of partnership from personal liabilities.
See for example http://www.irs.gov/businesses/small/article/0,,id=98214,00.html .