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 ?
First, the Internal Revenue Code specifically excludes partnership interests from tax deferral in an exchange.
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.
A partnership must make a formal Safe Harbor Election and attach the election to its tax return, which includes the effective date of the election, if it wants to issue an SHPI.
School-family-community partnership involvement is considered a central aspect of the school counselor's role (ASCA, 2003; Bemak, 2000; Bryan & Holcomb-McCoy, 2004, 2005; Taylor & Adelman, 2000; Walsh et al.
It's no accident that the city was chosen to receive a Pew grant to launch the partnership.
jointly to explore issues facing partnership implementation) as well as how the results from the focus groups would be used to benefit local partnerships.
Effectively monitoring the activities is also necessary, so ongoing, joint evaluations of the processes are needed to implement the partnership and to assess progress.
The goal of partnership efforts employed by the department faculty is involvement by a range of participants.
How can we build the foundations for partnership education?
The legislative history of the 1997 Act emphasizes that the foregoing Listed Assets are to be taken into account in addition to readily marketable stock and securities, in determining whether a corporation or a partnership is an investment company.
While a limited partnership isn't subject to the qualification restrictions of an S corporation, it must have at least one general partner who is personally liable for its debts.

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