ABA Family Legal Guide

Forming and Operating a Small Business

Types of Business Organizations

Partnerships

What is a partnership?

The legal definition of a partnership is pretty simple. It is an association of two or more persons who

1. have not incorporated; and

2. carry on a business for profit as co-owners.

A partnership exists if these conditions are met, even though the people involved may not know it or even intend that the business be a partnership--and even if they don't actually make a profit.