What is an unincorporated entity that has shared ownership called?

An unincorporated entity that has shared ownership is referred to as a partnership. Partnerships involve two or more individuals who manage and operate a business together, sharing its profits and liabilities. This structure allows for collaboration and pooled resources, making it easier for partners to contribute their skills and capital to the business.

In a partnership, each partner typically has a say in the management of the business, and decisions are often made collectively. The collaborative nature of a partnership distinguishes it from a sole proprietorship, where ownership and control reside with one individual. Unlike corporations, which are legal entities separate from their owners, partnerships do not have that separation. Therefore, partnerships are not subject to the same regulatory requirements as incorporated entities, making them simpler to establish and operate.

This structure is conducive to businesses where shared decision-making and expertise are valued, making it a popular choice for many small businesses and professional practices.