Articles Of Partnership


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.

BREAKING DOWN '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.

  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. Partnership

    A business organization in which two or more individuals manage ...
  5. Limited Partnership - LP

    Two or more partners united to conduct a business jointly, and ...
  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. Stock Analysis

    Pepsi's Partnership with Sodastream

    Examine Pepsi's partnership with SodaStream, what each company hopes to gain, and learn how the latest battle in the cola wars may play out.
  5. Entrepreneurship

    Samsung and Google: A Beautiful Friendship?

    Google and Samsung have more than a hardware/software relationship. These two technology giants have collaborated time and again to define mobile's future.
  6. Entrepreneurship

    Taxes in New York for Small Business: The Basics

    Learn how small businesses are taxed in New York, and understand how tax rates vary based on whether the business is an S corporation, LLC or partnership.
  7. Professionals

    Read These Tips Before Selling Your Advisory Biz

    Here are three tips financial advisors should follow when prepping their practice for a sale to help with a smooth transaction and transition.
  8. Investing Basics

    2 Ways Hedge Funds Avoid Paying Taxes

    Learn about two strategies hedge funds use to minimize their tax liabilities. Read why some hedge funds are in the reinsurance business in Bermuda.
  9. Stock Analysis

    How To Start Your Own Private Equity Fund

    Here's a how-to guide on starting on starting a private equity firm.
  10. Investing

    Hybrid Business: Rise of Nonprofits in Private Sector

    Businesses are embracing a mutually beneficial partnership wherein the ideals of the nonprofit sector are coupled with profit motive and capacity to scale.
  1. How are joint ventures regulated in the United States?

    Joint ventures are a very specific type of business arrangement. They can be organized in several different legal structures, ... Read Full Answer >>
  2. Can I buy insurance to reduce unlimited liability in a partnership?

    Partnership insurance is actually quite common. Most of the time, partners buy insurance to safeguard against the possibility ... Read Full Answer >>
  3. What are the benefits for a company investing in a greenfield investment?

    Advantages of greenfield investments include increased control, the ability to form marketing partnerships and the avoidance ... Read Full Answer >>
  4. What is a family Limited Liability Company (LLC)?

    A family limited liability company (LLC) is formed by family members to conduct business in a state that permits such form ... Read Full Answer >>
  5. What is the difference between a silent partner and a general partner?

    Business structures provide benefits to business owners and entrepreneurs. In the small business arena, the most common business ... Read Full Answer >>
  6. What are the liabilities of a silent partner?

    Because of the nature of their interest in a business, silent partners have limited liability that extends only up to the ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Barefoot Pilgrim

    A slang term for an unsophisticated investor who loses all of his or her wealth by trading equities in the stock market. ...
  3. Quick Ratio

    The quick ratio is an indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to meet ...
  4. Black Tuesday

    October 29, 1929, when the DJIA fell 12% - one of the largest one-day drops in stock market history. More than 16 million ...
  5. Black Monday

    October 19, 1987, when the Dow Jones Industrial Average (DJIA) lost almost 22% in a single day. That event marked the beginning ...
  6. Monetary Policy

    Monetary policy is the actions of a central bank, currency board or other regulatory committee that determine the size and ...
Trading Center