Arizona Partnerships

Partnerships are created when two or more people join to carry on a trade or a business together.  Unlike limited liability companies, Partnership are not considered a separate legal entity than its partners, and accordingly do not provide its partners protection from personal liability associated with the operations of the Partnership.  Accordingly, Partnerships are not created by filing documentation with a specific governmental agency, but are rather formed by default upon the joining together of its partners for a business purpose.

Much like an LLC, a partnership does not pay separate taxes on its profits, as profits are rather passed-through to the partners, who in turn report their respective share of the Partnership’s profits on their personal income tax returns, and pay the applicable taxes on their respective share.

Partnerships are typically governed by a Partnership Agreement, which outlines the partners’ general understandings with respect to all aspects of the business operations, including without limitation the sharing profits and losses; respective managerial roles, if any; and, additional obligations of the partners to one another.  Our business attorneys help our clients draft, review, and revise Partnership Agreements to assure that our clients’ best-interests are promoted and protected in the course of the business operations, and with the intention to limit the possibility of litigation as a result of potential partners’ disputes with each other.

Business Transactions Related Topics

• Business Formations
• Arizona Limited Liability Companies
• Arizona Corporations
• Arizona S-Corporation
• Arizona C-Corporation
• Arizona Partnerships
• Corporate Bylaws
• Operating Agreements
• Partnership Agreements
• Buy or Sell a Small Business
• Business Disputes & Dissolution
• Mediation/Arbitration