Partnerships

 

 

A partnership is in ideal structure for some businesses but not for others At J F Balshaw Accountancy we will advise you on the appropriate structure for your business.

 

We will also assist with the preperation of partnership year end accounts.

 

Partnership

 

An association of two or more persons engaged in a business enterprise in which the profits and losses are shared proportionally.

 

The legal definition of a partnership is generally stated as "an association of two or more persons to carry on as co-owners a business for profit"

 

The formation of a partnership requires a voluntary "association" of persons who "co-own" the business and intend to conduct the business for profit. Persons can form a partnership by written or oral agreement, and a partnership agreement often governs the partners' relations to each other and to the partnership. The term person generally includes individuals, corporations, and other partnerships and business associations. Accordingly, some partner-ships may contain individuals as well as large corporations.

 

Family members may also form and operate a partnership, but courts generally look closely at the structure of a family business before recognizing it as a partnership for the benefit of the firm's creditors.