A liability partnership is a type of business structure in which all partners are personally responsible for the debts and obligations of the company. This means that if the company faces any financial difficulties or legal issues, the personal assets of each partner may be at risk to cover the costs. Liability partnerships are common among professional services such as law firms, accounting practices, and consultancies where there is a high potential for legal disputes or claims against the business. In contrast to a limited liability partnership, which offers protection to individual partners from personal financial responsibility, liability partnerships place full responsibility on each partner for the actions of the company as a whole.