A partnership is a formal agreement made by two or more parties to jointly manage and operate a company. In a partnership, all partners share liabilities and profits equally, while in some cases, partners may have limited liability. There are several types of partnership arrangements, such as general partnerships, limited partnerships, and limited liability partnerships (LLP). Partnerships are not considered independent legal entities, and taxes are paid by the partners rather than by the partnership itself. A partnership agreement is a vital component of a partnership, as it outlines the purpose of the partnership, the rights and responsibilities of the partners, and the distribution of ownership, responsibilities, profits, and losses. Partnerships can be formed without a written contract, but a partnership agreement is recommended to clearly define the business relationship and responsibilities
. Partnerships are governed by state laws and are defined as a voluntary, contractual association between two or more parties to carry out business for- profit as co-owners. Partnerships are composed of partners who are agents of the partnership and may enter into contracts on behalf of the partnership. An express agreement is not needed to form a partnership; it is formed simply by persons associating themselves as co-owners to carry out business
. In summary, a partnership is a business structure formed by two or more individuals who jointly manage and operate a company, sharing its liabilities and profits. It is not considered an independent legal entity, and the partners are responsible for paying taxes on their portion of the partnership's profits. A partnership agreement is essential to define the terms of the partnership, including the rights and responsibilities of the partners
