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 ?
Traditionally, an action for a partnership accounting encompasses "all claims, counterclaims and set offs between and among the partners involving matters related to the partnership .
71) In short, the trial court and the special master are accorded great discretion in deciding how to conduct a partnership accounting.
1938), the Florida Supreme Court explained the rationale for awarding attorneys' fees in a partnership accounting lawsuit: "The general rule is that costs including attorney's fees will be allowed from the estate in cases where trustees or cestui que trusts represent all the beneficiaries and bring a fund in court for distribution or in cases of partnership accounting.
The costs in a suit for partnership accounting, including expert fees and attorneys' fees, are generally payable out of the partnership.
A trial court retains great discretion in awarding fees in a partnership accounting.
In contrast, if the trial court determines during phase one of the partnership accounting that the party seeking a partnership accounting is not entitled to an accounting because no partnership exists, then attorneys' fees do not shift.
A partnership accounting can be an exceptionally useful tool for limiting the number of issues in a dispute between former business partners who have axes to grind and personal animosity.
14) There is significantly more case law in Florida concerning phase one of a partnership accounting than phase two.

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