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 ?
What is the effect of a partnership's not electing to adjust the basis of partnership property on the sale or exchange of a partnership interest or on the death of a limited partner?
704-2, but the results are inconsistent with the purpose of IRC Section 704(b) and these regulations (see Q 1195); (5) the benefits and burdens of ownership of partnership property are either substantially retained by the contributing partner or substantially shifted to a distributee partner.
inclusion of the partnership property in the transferor's estate
For example, assume that A contributes to a partnership property with a $10 adjusted tax basis and a fair market value of $100, and then sells its partnership interest to T for $100 at a time when the partnership's only assets are cash and the property contributed by A.
Additionally, the proposed regulations dealing with obligations of disregarded entities and with partnership property indirectly held by a CFC are proposed to apply to tax years of CFCs ending on or after the date of publication of the final regulations, and to tax years of U.
His share of a mortgage on partnership property is $40,000, and his share of "unrealized receivables" (potential depreciation recapture on the mortgaged property) is $5,000 in which the partnership's basis is zero.
For example, the potential decrease in the basis of partnership property upon either the transfer of a partnership interest or the distribution of partnership property would be insufficient to grant a revocation request.
The UPA theory of partnership was that it was an aggregate of its members, who held partnership property as tenants in partnership.
The corporation to which the partnership property will be transferred is a newly-formed corporation.
The selling partners also will retain a small royalty on certain future production from partnership property.
743(b) basis adjustment is equal to the difference between the transferee partner's tax basis (outside basis) in the acquired partnership interest and the transferee's share of the partnership's tax basis in partnership property (inside basis).
Their agreement provided for all partnership items to be allocated 50/50 and all partnership property to be revalued if either of them contributed additional capital.

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