What is the difference between a shareholder and a partner?

A shareholder and a partner can both be owners in a business, but there are key differences between the two. A shareholder, also known as a stockholder, is someone who owns shares of a company. These shares are generally bought and sold on the open market and represent a certain percentage of ownership in the company. They are not actively involved in the day to day operations, but they do have the right to vote on matters related to the business. A partner, on the other hand, is a more active role in a business. A partner is an individual or a business that contributes capital to a business and participates in the management or operations of the company. Partners have a direct financial stake in the success of the business and, therefore, have a say in how the company is managed and what decisions are made. Additionally, partners are personally liable for any debts and obligations the business may incur. In Washington, partners are subject to additional formalities and regulations, including registering with the Washington Secretary of State and publishing a notice of partnership in a local newspaper. Shareholders, on the other hand, are only subject to the laws and regulations of the company and do not need to go through any formal processes.

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