A “Partnership” is an association of two or more people who agree to share in the profits and losses of a business venture. Partnership agreements can be verbal or in writing.
In a general partnership, all partners are jointly and severally liable (responsible) for all partnership debts, whether the other partner or partners agreed to it or not. 
There is no protection from personal liability for business debt.
In a Limited Partnership, where the partners invest in the business, but have no right of management or control over the business, their liability may be limited to the money or property invested in the partnership.
A comparison is provided here between the corporation and partnership forms with respect to the factors that will be most important.
Tax considerations play a large role in choice of business organization type. For more information see Tax Considerations.