(A) In general, this refers to a legally recognized organizational structure called a general partnership, an association of or business owned by two or more people who share the profits and are personally liable for all business debts. States may also provide for certain entities in which there may be a limited or limited liability partnership which may serve to limit liability to some degree. In general, each partner’s share of the partnerships, profits and losses, is in proportion to their capital contributions. Partnerships require no registration although there may be tax reporting requirements. See also limited partnership; limited liability partnership. (B) contracts. An agreement between two or more persons, for joining together their money, goods, labor and skill, or either or all of them, for the purpose of advancing fair trade, and of dividing the profits and losses arising from it, proportionably or otherwise, between them. Sometimes partnership signifies a moral being composed of the reunion of all the partners. 4 Pard. n. 966. As a partnership has a separate existence as a person, it becomes liable to fulfill all its engagements, and the partners are individually bound and responsible only on its default, as sureties. Partnerships will be considered, 1st. In respect to their character and extent, as they regard property. 2d. With relation to the number and character of parties.
Law Dictionary – Alternative Legal Definition
A voluntary contract between two or more competent persons to place their money, effects, labor, and skill, or some or all of them, in lawful commerce or business, with the understanding that there shall be a proportional sharing of the profits and losses between them. Story, Partn.