Partnerships and Joint Ventures are mandatory for anyone starting an organization with partner(s).
Partnership
You create a shared business, which remains the property of all respective founders for the duration of the business unless assets or rights are bought/sold/traded to another member. Partnerships are ideal when you have a straightforward desire to start a business with another person or persons for the long-term.
Joint Venture
A partner temporarily owns part of the company, typically for the purpose of launching a new organization, providing resources that otherwise wouldn’t be available, or achieving another clearly stated limited-time purpose. Rather than taking a loan, you share profit and loss for a period with the partner.
Partnerships may be composed of individuals, corporations, trusts, estates, and most other types of officially recognized organizations. Each partner must contribute to the business and take a share in the profit and loss of the business. Unlike corporations, partnerships don’t pay income tax. Instead, any profit and loss is passed on to partners, who file it separately on their personal or business tax returns depending on how they registered the partnership.
