Partnerships

PARTNERSHIPS 1 Running Head: PARTNERSHIPS Business Law II Park University PARTNERSHIPS 2 Abstract In this paper I will discuss the characteristics and formality of the pursuit form of affair. A confederacy is defined as two or more than owners, which enables each(prenominal) single(a) partner the undecomposed to make business decisions and a shargon of every last(predicate) the profits of the business equally. PARTNERSHIPS 3 PARTNERSHIPS virtuoso of the most heavy decisions to make when starting line a business is the form of business you chose. The decision is important because the owner’s liability and control of the business varies among the incompatible forms of business. Partnerships are relatively easy to create due to in that localisation being no formalities in creating one. A meat whitethorn be formed either orally or with a compose agreement. One advantage of having a indite agreement is that the partners are able to define their rights and duties. If there is no written agreement in the relationship as partners, the offence rules of the Revised Uniform Partnership Act of 1944 (RUPA) determines the rights of the partners. The RUPA defines a compact as “an association of two or more persons to fend on as co-owners of a business for profit.

” A league can be two individuals who begin making article of furniture in their garage, selling the furniture to others, and splitting the profits and the expenses. Therefore, a partnership has been formed even if neither has ever uttered the word partnership. P ARTNERSHIPS 4 A major attraction to f! orming a partnership can be contributed to the fact that it requires no formalities and may be formed by default. Just as all income in a sole proprietorship is the income of the owner, in a partnership the income belongs to the partners and therefore is reported on each individual partner’s income tax return. Likewise, any business losings are deductible without limit on the partner’s individual tax return. When...If you want to get a large essay, order it on our website: BestEssayCheap.com

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