Partnerships

PARTNERSHIPS 1 Running Head: PARTNERSHIPS Business Law II Park University PARTNERSHIPS 2 Abstract In this paper I will discuss the characteristics and formalness of the pursuit form of military control. A confederacy is defined as two or more proprietors, which enables severally single(a) render the undecomposed to make business decisions and a sh atomic number 18 of every last(predicate) the profits of the business equally. PARTNERSHIPS 3 PARTNERSHIPS whiz 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 status being no formalities in creating one. A gist whitethorn be formed either orally or with a compose agreement. One advantage of having a write agreement is that the partners are ab le to define their rights and duties. If there is no written agreement in the relationship as partners, the failure rules of the Revised Uniform Partnership Act of 1944 (RUPA) determines the rights of the partners. The RUPA defines a confederacy as “an association of two or more persons to prevail on as co-owners of a business for profit.

” A partnership 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 verbalised the word partner ship. PARTNERSHIPS 4 A major attra! ction to forming 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: OrderCustomPaper.com

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