Partnership Essay

471 Words2 Pages
An unincorporated organization classified as partnership. It is a relationship of two or more people co-own a business for mutual benefit. Each person contributes money, property, labor or skills and expects to share in profits or losses of business. A general partnership involves two or more owners carrying out business purpose, each share equal rights and responsibilities. Limited partnership involves one or more general partners, this allows each partner to restrict owns liability to the amount of owns investment. The general partner retains the rights to control the business, while limited partners do not participate in management decisions. Limited liability partnership (LLP) retains the tax advantages of general partnership form and offer some personal liability protection for participants. Partners not need liable for its debts personally. The partnership agreement includes the original agreement, any modifications and must be agreed by all partners. Termination of partnership may occur when at least 50% of total interest in partnership capital and profits is sold or exchange within 12 month periods. Every partnership that engages in a trade or business or has gross income must file an information return on Form 1065 showing its income, deductions, and other required information. A partnership generally does not recognize any gain or loss because of distributions it makes to partners. To start a business in Malaysia, you need to register the new company with SSM Malaysia, and decide the company’s name and business activity. Besides that, you must be a Malaysian Citizen or Permanent Resident. The partners are requiring to personally visiting SSM office to register their company. The advantages of partnership are relatively easy to establish with more than one owner, the ability to raise funds may be increased, and this may allow a

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