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Forming A Partnership
Forming A Partnership
A partnership is a business arrangement in which two or more people own an entity, and
personally share in its profits, losses, and risks. The exact form of partnership used can
give some protection to the partners. A partnership can be formed by a verbal agreement,
with no documentation of the arrangement at all. However, there may be subsequent
disagreements among the owners at a later date, so it makes sense to create a written
document that states how certain situations are to be handled. This partnership
agreement should at least cover the following topics:
In addition to the partnership agreement, the partners must engage in a number of other
formation activities that are common to all types of businesses. These actions include:
Reference:https://www.accountingtools.com/articles/forming-a-partnership.html