The English Common Law defined a partnership as “A Contract of two or more competent persons to place their money, effects, labor, and skill, or some or all of them, in lawful commerce or business, and to divide the profit and bear the loss in certain proportions.” partnerships
Arizona Revised Statutes § 29-206(A) defines a partnership with the following language: “A partnership is an association of two or more persons to carry on as co-owners a business for profit.” A partnership, by definition, must have a business purpose. That such business purpose does not occupy anyone full time is not relevant.
A partnership agreement may be oral, although it is wiser to put the agreement in writing. An oral agreement is difficult to enforce because of the difficulty in proving the terms of the agreement. A written partnership agreement should cover, at a minimum, the following
Name of the Partnership
Nature of the Partnership
Relations Of Partners To Persons Dealing With The Partnership
Relations Of Partners To One Another Article
Property Rights Of A Partner Article
Dissolution And Winding Up
Generally, partnerships may be placed into the following categories:
Limited Liability Partnership
In a general partnership, all of the partners are liable for the debts and liabilities of the partnerships. In a limited partnership, only the general partners are liable for all of the debts and liabilities while the limited partners are liable only to the extent of their agreement to assume liability. A limited liability partnership is a creature of statute and is similar to a limited partnership.
For help with an Arizona partnership call our office for a telephonic consultation*.
Call 928/445-3230 or contact us.
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