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 ?
Like Winters (1993), Cochran and Dean found that parents emerged from their empowerment-focused school-family-community partnership program having better self-perceptions, gaining stronger social networks, and being more willing to initiate changes in their neighborhoods.
The learning coalition: Professional development schools in partnership. Journal of Teacher Education, 49, 5, 325-333.
It's no accident that the city was chosen to receive a Pew grant to launch the partnership. With about 80 percent of students going on to college enrolling in the two local colleges and 70 percent to 80 percent of teachers coming out of the University of El Paso, Haycock says the self-interest was there on both sides of the education coin.
These categories provided an inclusive framework from which to describe practitioners perspectives regarding the creation and implementation of community career partnerships. Every substantive comment expressed in the focus group sessions regarding the creation and implementation of a partnership could be assigned to one of these categories.
People involved in or contemplating partnerships should consider four critical areas for the partnership's future: expectations, creating guidelines to deal with the unexpected, dealing with differences, and planning for the end.
The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) was enacted to improve the auditing and adjustment of income items attributable to partnerships. It requires determining the treatment of all partnership items at the entity level.
First, the Internal Revenue Code specifically excludes partnership interests from tax deferral in an exchange.
With these needs in mind, the agency contacted MSU to explore whether the existing partnership could be extended through a funded partnership to include program evaluation.
The partnership had unrestricted use of the receipts--the partners only disputed the division of the money, If the partnership had placed the receipts in an escrow account as the result of a dispute with a third party, under the claim of right doctrine the receipts would not be included in its income until the matter was settled and the partners would need to report income only if the dispute was settled in its favor.
Liquidation value is the amount of cash that would have been received for the partnership interest had the partnership sold all of its assets--both tangible and intangible--for cash, immediately after the partnership interest was issued.
TEI's 2002 Federal Tax Seminar, Critical Issues in Corporate Joint Ventures and Partnerships, held April 17-19 in Chicago, was deemed an overwhelming success as more than 200 people attended the three-day program.
While that may sound like a "damned if you do, damned if you don't" scenario, partnership veterans note that what it really means is that processes must be approached with caution and managed carefully.

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