Business Formation

What is a Partnership?

In a partnership, two or more persons share ownership of and in a business. Like a sole proprietorship, a partnership legally does not have a separate existence from its owners. To reduce the likelihood of disputes among partners, they should negotiate a partnership agreement under which they set forth how profits will be shared, how disputes will be resolved, how decisions will be made, if and how partners may be bought out, how future partners will be allowed into the partnership, and what steps will need to be taken to dissolve the partnership.