an equity partner is a part-owner of the business who is entitled to a proportion of the profits of the partnership. an equity partnership agreement should set forth the rights and obligations of all the partners, including the equity partners, in the business. furthermore, each partner is liable for the losses of all other partners and could be held liable for the full amount of the partnership’s liabilities. the second type of partnership is a limited liability partnership, where each partner is only responsible for their own liabilities. whether a partnership is general or limited liability is set forth in the partnership agreement. in this partnership system, senior partners, who have been with the business longer, receive a higher share of the profits than a new equity partner. proponents of the system, though, note that the lockstep partnership system reduces internal competition and frees partners from the anxiety of how potential assignments or relocation will affect their compensation.