Difference between revisions of "Partnership"
Jump to navigation
Jump to search
(undeadend) |
|||
| Line 1: | Line 1: | ||
| − | + | The term '''partnership''' has many meanings. This article contemplates its use to describe a form of business entity. | |
A partnership occurs when two or more individuals formally agree to conduct a business together. Partners do not have to contribute equally to the business nor do they necessarily participate in the profits equally. | A partnership occurs when two or more individuals formally agree to conduct a business together. Partners do not have to contribute equally to the business nor do they necessarily participate in the profits equally. | ||
| − | A partnership agreement will normally describe: | + | A partnership [[agreement]] will normally describe: |
- The nature of the business to be conducted | - The nature of the business to be conducted | ||
| Line 13: | Line 13: | ||
or disability of a partner | or disability of a partner | ||
| − | Partnerships are not normally taxed, per se, but partners are taxed on their share of the partnerships profits. A taxable share of | + | Partnerships are not normally taxed, per se, but partners are taxed on their share of the partnerships profits. A taxable share of [[profit]]s is can be significantly less that cash received, and this is more likely to be true in the early stages of the business with cash is required to finance working capital and growth. |
[[Category:Business]] | [[Category:Business]] | ||
Revision as of 01:25, October 25, 2007
The term partnership has many meanings. This article contemplates its use to describe a form of business entity.
A partnership occurs when two or more individuals formally agree to conduct a business together. Partners do not have to contribute equally to the business nor do they necessarily participate in the profits equally.
A partnership agreement will normally describe:
- The nature of the business to be conducted - The Capital to be contributed by each partner - The ongoing duties of each partner - The division of profits of the partnership - Formalities for admission of new partners, expulsion of partners, valuation of partnership interests and what happens upon the death or disability of a partner
Partnerships are not normally taxed, per se, but partners are taxed on their share of the partnerships profits. A taxable share of profits is can be significantly less that cash received, and this is more likely to be true in the early stages of the business with cash is required to finance working capital and growth.