( Originally Published 1918 )
Oldest Form of Business Association.—When man first felt his own limitations in the conduct of his business affairs, he turned to some other man who possessed some qualifications of advantage in the conduct of his business, whether it were services, property, money, skill or other consideration, and sought a business alliance with him in order that the business might develop and expand under their joint efforts and with their combined resources.
From this simple beginning, from this early recognition of the advantages derived from associations of men in business, has grown all of the great business organizations of the world, expanding year by year, and taking on new forms to meet the new conditions of the commercial world as they presented themselves to mankind.
A Partnership exists where two or more individuals combine their capital, property, skill or labor, or all of these, for the transaction of a lawful business for gain, upon an understanding that profits or losses shall be shared or borne by them in certain proportions.
To Form a Partnership these things are necessary: A contract ; parties competent to contract; partnership capital or property; a community of control ; a lawful business ; and profit sharing as a motive.
Associations Not Formed for Profit are 'not partnerships. These include clubs, societies, churches and fraternal organizations. In some of the states such organizations are chartered or otherwise authorized by law. They are neither corporations nor partnerships, but have some of the characteristics of both.
The Firm is the name, style or title under which the partners do business, and also means the partners themselves, taken collectively. The firm name should be set forth in the articles.