Articles Of Partnership

AAA

DEFINITION of 'Articles Of Partnership'

A document that formalizes an agreement between parties who want to enter a business arrangement to pool their labor and capital and in which all owners are equally responsible for the company's liabilities and entitled to its assets according to agreed-upon percentages. In addition to being an important legal document, the articles of partnership can be useful in preventing and resolving disagreements among partners since it clarifies the terms of the relationship.

INVESTOPEDIA EXPLAINS 'Articles Of Partnership'

The articles of partnership will typically supply the name of the partnership, its principal place of business, the purpose of the business, term of the partnership, each partner's initial capital contribution, each partner's percentage of interest in the partnership, how profits will be distributed, how the partnership will be managed, how salaries (if any) will be distributed, how and under what conditions partnership rights can be transferred or sold, and other information that is essential to the business arrangement.

RELATED TERMS
  1. Articles Of Incorporation

    A set of documents filed with a government body to legally document ...
  2. Capital

    1) Financial assets or the financial value of assets, such as ...
  3. Silent Partner

    An individual whose involvement in a partnership is limited to ...
  4. Limited Partnership - LP

    Two or more partners united to conduct a business jointly, and ...
  5. Partnership

    A business organization in which two or more individuals manage ...
  6. Liability

    A company's legal debts or obligations that arise during the ...
Related Articles
  1. Retirement

    Discover Master Limited Partnerships

    These unique investments provide significant tax advantages.
  2. Personal Finance

    Protect Your Personal Assets

    A family limited partnership (FLP) can go a long way toward securing your family's property.
  3. Options & Futures

    Asset Protection For The Business Owner

    Could incorporating your business help protect it? Find out here.
  4. Typically, SPEs are subsidiaries of a larger corporation.
    Investing

    How Special Purpose Entities Help Fight Risk

    A special purpose entity, sometimes called a special purpose vehicle, is a legal entity created for one very limited, particular task. Typically, SPEs are subsidiaries of a larger corporation.
  5. Bonds & Fixed Income

    Can I invest my IRA in an entity, business or LLC?

    Explore different types of businesses, entities, corporations and limited liability companies, and the types IRA-eligible securities they offer.
  6. In corporate terms, an acquisition is the purchase of a company or the division of a company.
    Investing

    What's an Acquisition?

    In corporate terms, an acquisition is the purchase of a company or the division of a company. Some acquisitions are paid in cash, while others are paid with a combination of cash and the acquiring ...
  7. Entrepreneurship

    What's the difference between limited liability partnership and general partnership?

    Learn the differences between general partnerships and limited liability partnerships; each type has unique traits, benefits and risks.
  8. Entrepreneurship

    I am starting a limited liability company (LLC). I will be the sole member. Can I open an SEP IRA? How ...

    In a word, yes. A limited liability company (LLC) is eligible to establish a simplified employee pension (SEP). Keep in mind that plan contributions (including SEPs) are usually based on W-2 ...
  9. Retirement

    Build A Wall Around Your Assets

    Learn how to protect your money from lawsuits, creditors and other judgment proceedings.
  10. Fundamental Analysis

    Cashing In On The Venture Capital Cycle

    Find out how VC firms make the market go round, and round and round.

You May Also Like

Hot Definitions
  1. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  2. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  3. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  4. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
  5. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
  6. Law Of Supply And Demand

    A theory explaining the interaction between the supply of a resource and the demand for that resource. The law of supply ...
Trading Center