partnership

   An ongoing business enterprise entered into for profit that is owned by more than one person, each of whom is a partner. A partnership can be created by a formal written agreement (the best idea) or based on an oral agreement or a handshake. Each partner contributes money, property or labor in return for a percentage of ownership and is personally liable for all the debts and contracts of the partnership, even when another partner creates the debt or enters into the contract. Each partner has a share in management decisions and shares in profits and losses according to the percentage of his or her total ownership. A partner cannot take for himself or herself a corporate opportunity that by rights belongs to the partnership. Registration with a governmental agency is not necessary to create a partnership, although tax registration and other requirements of conducting a business (e.g., filing a doing business as statement) may still apply. Partnerships do not pay federal or state income taxes; rather, profits and losses are passed through to the individual partners, who report the information on their personal returns. A partnership differs from a joint venture, which is an enterprise formed for a particular project, with the aim of a prompt division of profits. See general partner; limited liability partnership; limited partnership; silent partner.

Business law dictionary. 2015.

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Look at other dictionaries:

  • partnership — part·ner·ship n: an association of two or more persons or entities that conduct a business for profit as co owners see also uniform partnership act in the important laws section compare corporation, joint venture, sole pro …   Law dictionary

  • Partnership — • An unincorporated association of two or more persons, known as partners, having for its object the carrying on in common by the partners of some predetermined occupation for shared profit Catholic Encyclopedia. Kevin Knight. 2006. Partnership… …   Catholic encyclopedia

  • Partnership — Part ner*ship, n. 1. The state or condition of being a partner; as, to be in partnership with another; to have partnership in the fortunes of a family or a state. [1913 Webster] 2. A division or sharing among partners; joint possession or… …   The Collaborative International Dictionary of English

  • partnership — P/ s. n. asociere într o afacere a doi sau mai mulţi parteneri, în care fiecare îşi menţine propriul capital, dar îl administrează şi îl foloseşte în comun cu ceilalţi, participând proporţional la împărţirea câştigului. (< engl. partnership)… …   Dicționar Român

  • partnership — (n.) 1570s, from PARTNER (Cf. partner) + SHIP (Cf. ship). In the commercial sense from c.1700 …   Etymology dictionary

  • partnership — /ˈpartnerʃip, ingl. ə ˈpɑːtnəʃip/ [vc. ingl., comp. sul modello di leadership] s. f. inv. accordo, partenariato …   Sinonimi e Contrari. Terza edizione

  • partnership — [n] alliance; participation affiliation, assistance, association, band, body, brotherhood, business, cahoots*, cartel, chumminess, clique, club, combination, combine, community, companionship, company, conglomerate, conjunction, connection,… …   New thesaurus

  • partnership — ► NOUN 1) the state of being a partner or partners. 2) an association of two or more people as partners …   English terms dictionary

  • partnership — [pärt′nərship΄] n. 1. the state of being a partner; participation 2. the relationship of partners; joint interest; association 3. a) an association of two or more partners in a business enterprise b) a contract by which such an association is… …   English World dictionary

  • PARTNERSHIP — Formation The earliest form of commercial partnership in Jewish law was partnership in property, or joint ownership. Craftsmen or tradesmen who wished to form a partnership were required to place money in a common bag and lift it or execute some… …   Encyclopedia of Judaism

  • Partnership — For the cricket term, see Partnership (cricket). A partnership is an arrangement where parties agree to cooperate to advance their mutual interests.[1] Since humans are social beings, partnerships between individuals, businesses, interest based… …   Wikipedia

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