partnership

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Related to Partnerships: General partnerships

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 ?
However, for several reasons, investors cannot use a tax deferred exchange to sell their respective partnership interests independently of the partnership and use the proceeds to reinvest in other real estate in a [section]1031 exchange.
This still allows partnerships to issue profits interests while avoiding potential adverse income tax ramifications.
Although the taxpayer was not the tax matters partner, he was entitled to have the Tax Court adjudicate an issue involving a partnership item.
The actual local partnerships are driven most often by higher education, experts agree.
Community career partnerships have the potential to draw into working alignment the critical aspects of career development and the key social contexts that can either promote or inhibit growth.
Partnerships must be built around long-term relationships.
Involvement in department partnerships is open to undergraduate students, particularly teaching interns, as well as graduate students, in-service educators, public school students, administrators, other University personnel, and even parents.
Similarly, with respect to partnerships and non-corporate entities, it is intended that, where 20 percent or more (but less than 90 percent) of the entity's assets consist of Listed Assets, a pro rata portion of the interest in the entity will be treated as a Listed Asset.
Also, at least until LLCs become more well-known to the general investing public, selling interests in them may be more difficult than selling stocks of corporations or interests in limited partnerships.
Lebanon Partnership in September, at the request of United States President George W.

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