Partnerships are the simplest and most common form of business arrangements besides sole proprietorships. There are a few different types of partnerships -- general, limited, and limited liability partnerships -- each with its own advantages and disadvantages. For instance, limited partners (typically investors) have the opportunity to do well financially without being involved in the day-to-day activities of the business, while general partners are liable for any debts or legal judgments against the business. As with any business legal structure, you want to weigh the pros and cons of each and determine which is the best fit for your organization.