partnership

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Partnership

Shared ownership among two or more individuals, some of whom may, but do not necessarily, have limited liability with respect to obligations of the group. See: General partnership, limited partnership, and master limited partnership.

Partnership

A business structure in which two or more persons share in the ownership and profits and losses of the business. There are three main types of partnerships. In general partnerships, two or more partners, jointly and severally, share all profits and losses, management authority, and risk for the business. In a limited liability partnership, partners share profits and losses and divide management authority according to the company's specific structure. In case of liquidation, every partner is only liable for the amount he/she has invested in the company, much like a stockholder in a corporation. Limited partnerships have elements of both the previous structures, having both general partners and limited partners. General partners in a limited partnership must share a certain amount of profit and financial liability with limited partners according to an arrangement between them. In this situation, general partners have all management authority and unlimited liability, while a limited partner is only liable for his/her investment.

In most jurisdictions, partnerships are preferable to corporations because partnerships' profits are not taxed prior to distribution to the partners. In other words, there is no equivalent to a corporate tax on partnerships. On the other hand, partners have more legal and financial liability in case of liquidation than would shareholders and most management in a corporation.

partnership

A business owned by two or more people who agree on the method of distribution of profits and/or losses and on the extent to which each will be liable for the debts of one another. A partnership permits pass through of income and losses directly to the owners. In this way, they are taxed at each partner's personal tax rate. Compare corporation, proprietorship. See also general partnership, limited partnership, silent partner.

partnership

a BUSINESS owned and controlled by two or more persons who subscribe capital and share decision-taking as specified by a partnership agreement. Generally partners have unlimited liability for any debts incurred by the partnership and any of them may enter into contracts on behalf of the partnership. Partnerships are particularly prevalent in professional services, for example accounting, surveying and insurance. See SLEEPING PARTNER, SOLE PROPRIETORSHIP, JOINT-STOCK COMPANY, LIMITED LIABILITY.

partnership

see FIRM.

partnership

A legal relationship between two or more persons, each of whom may act as an agent for the partnership and legally bind it and the other partners.

Partnership

A form of business in which two or more persons join their money and skills in conducting the business. Partnerships must file a return but are not subject to tax. Each partner reports his or her share of the partnership's income, gains, losses, deductions, and credit on his or her individual return.
References in periodicals archive ?
The partnership agreement must contain provisions that are legally binding on all of the partners stating that (a) the partnership is authorized and directed to elect the safe-harbor rules, and (b) the partnership and each of its partners (including any person to whom a partnership interest is transferred in connection with the performance of services) agree to comply with all requirements of the safe-harbor rules with respect to all partnership interests transferred in connection with the performance of services while the election remains effective.
Benefits to the contributor can include tax deferral, portfolio diversification, and a stable return on investment, along with the right to redeem partnership interests for cash or REIT shares.
2036(a)(1) applied to the transfer by Albert Strangi of approximately $10 million of assets to an FLP in exchange for a 99 percent limited partnership interest, or whether the transfer of assets to the partnership would be respected for estate tax purposes so that the asset subject to valuation in Strangi's estate would be the limited partnership interest.
5 million, receiving a 99% limited partnership interest.
The purchase of the limited partnership interests allows AIMCO to increase its ownership interest in the partnerships that AIMCO will control upon completion of the Insignia merger, in addition to increasing its ownership in partnerships in which AIMCO is presently the general partner and property manager.
721(a) provides generally that neither the partnership nor the partners recognize gain or loss on a contribution of property to a partnership in exchange for a partnership interest.
First, the Internal Revenue Code specifically excludes partnership interests from tax deferral in an exchange.
Under the proposed regulations, if a service provider receives a partnership interest of profits or capital that is substantially vested and not subject to a substantial risk of forfeiture, or substantially nonvested with a Sec.
The partnership interest was included in her estate with a value based on an appraisal.
41 per OP Unit) as consideration for the limited partnership interests in 27 English multifamily and commercial real estate partnerships.
In determining that the losses were passive losses, the IRS took the position that the Garnetts' interests in the LLPs and LLCs were limited partnership interests that were subject to Sec.
Later in 1996, the Bongard Family Limited Partnership was formed, whereby Bongard and the children's trust transferred their Class B member interest in WCB to the FLP in exchange for partnership interests.

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