A partnership is an arrangement between two or more individuals, corporations, or other entities that is carried on with the expectation of earning profit. It is not an incorporated entity; each of the partners is therefore directly liable to the customers, creditors, suppliers and others doing business with the partnership. Accordingly, liability must be addressed carefully when entering into a partnership. A partnership can exist in the way that two or more people or entities carry on business, even if they have no formal partnership agreement. We strongly recommend putting a partnership agreement in place to address the issues associated with the business relationship, including liability.
A partnership may be an appropriate structure for certain types of investment opportunities, and in order to qualify for certain tax advantages. We can review your particular circumstances to help you determine whether a partnership would be appropriate for your particular circumstance.