Business ENewsletter August 05 2010

Partnership is one of the oldest forms of business organization. Historically, partnerships required no special formalities, but could arise simply by virtue of two or more people acting in concert for profit. Through the ages, this relationship has caused problems for some partnerships. Even today, individuals can face liability as partners based on their actions even though they never intended to formalize a partnership relationship. Increasingly, however, state partnership laws employ formal requirements and protections while retaining some of the form's traditional flexibility.