{"id":4854,"date":"2021-08-12T11:03:40","date_gmt":"2021-08-12T16:03:40","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/incorporation-and-legal-structures\/partnership-definition.html"},"modified":"2025-10-26T12:01:00","modified_gmt":"2025-10-26T17:01:00","slug":"partnership-definition","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/partnership-definition.html","title":{"rendered":"Partnership Definition"},"content":{"rendered":"\n
\n

Partnership Definition<\/h1>\n\n
\n
\n By Linda Long, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n

Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

\n
\n
\n

Key Takeaways<\/h2>\n

Partnerships are created when two or more individuals go into a business venture<\/span> together agreeing to share profits<\/span> and losses. However, depending on the type of partnership<\/span>, the partners may also be liable for partnership debts<\/span> and obligations.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

What Is a Partnership?<\/h2>\n

A partnership is made up of two or more people who own a business together and share profits<\/span> and losses of that business. The partners of the partnership also are jointly responsible for the business debts and liabilities.<\/p>\n

Although it is a good idea to have a formal agreement about how the partnership will run, it is not a requirement under the Revised Uniform Partnership Act<\/span> to have a formal written partnership agreement<\/span>. An oral agreement will be enough to make the partnership valid. In some cases, merely carrying on a business relationship as partners will be enough to form a valid\u00a0partnership<\/a>.<\/p>\n

Key Takeaways<\/h2>\n