A partnership is an association of two or more persons for the purpose of conducting business. Although the partnership can declare bankruptcy and limit some liability, it is not normally regarded as a legal entity like a corporation.
There are two types of partnerships -- the general partnership and the limited partnership.
In a general partnership, all partners share in both the profits and responsibilities of the business. Unless otherwise spelled out in the partnership agreement, each partner has one vote, no matter how much he has contributed to the business. A general partnership is the most popular partnership.
A partnership begins with an agreement, which can be spoken, written or simply a matter of understanding. Good friends who decide to form a partnership may not feel it necessary to reduce their arrangements to writing. However, experience proves that it makes sense to draw up an agreement. Any point that is covered in the partnership agreement is subject to state law.
If you decide that a Partnership Agreement is what your business requires, this kit will make the process simple, quick and easy.