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Legal Tip of the Day

A partnership can be formed without paperwork

Daily Legal Tip for Saturday, May 10, 2008

In some states, a partnership can be formed as soon as two or more people associate to carry on as co-owners of a business for profit. In other words, these states require no strict formalities in forming a partnership. The partnership agreement can be either expressly written or implied through the conduct of the parties. However, some states require a partnership agreement to be written if the partnership cannot be performed until a certain amount of time after its making. When determining whether a partnership has been formed by implication, courts may consider any expression of intent to be partners, any sharing of profits and losses, and participation in control of the business.

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