partnership

Two or more people can start business {partnership}| and share profits and losses. Partners share responsibility for liabilities.

types

In most partnerships {general partnership}, partners have equal involvement in the business and can make contracts and perform all business transactions. Partnerships {limited partnership} can have separate managers and investors, who must register with state securities-regulating agency.

tax

Business does not file tax return. Partners must file, but can assign profits and losses differently. Changing partnership relation typically causes tax liability. Terminating partnership typically causes tax liability for all partners.

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Social Sciences>Economics>Microeconomics>Business>Kinds>Partnership

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Date Modified: 2022.0224