Partnership

1. A contract of two or more persons to place their money,effects, labor and skill, or some or all of them, in lawful business, and todivide the profit and bear the loss in certain proportions. 2. An associationof two or more persons to carry on as co-owners a business for profit. Partnersare individually liable for the debts of the partnership, and assetsindividually owned will be used to satisfy any such debt when partnershipassets are insufficient. A partnership is not subject to tax; rather the incomeis divided and taxed as personal income to the individual partners, unlikeprofits in corporations. The decision whether to form a partnership or toincorporate is generally controlled by the tax consequences.