Partnership Formation Flashcards
1
Q
Partnership (Definition)
A
An agreement among two or more persons to carry on as co-owners a business for profit.
No intent to form a partnership is required, only those two elements.
2
Q
Factors Indicating Partnership Formation (Without Elements)
A
(1) Common ownership of property;
(2) designation of the entity as a partnership; and (3) higher degree of activity, such as both purchase and manage the property.
3
Q
LP and LLP Formation Requirements
A
(1) A formal agreement and the filing of documents, such as a certificate, with the state.
(2) If improperly formed, the result is a general partnership.
