Partnership definition. Analyzing the definition of key terms often provides more insight about concepts. Partnership can be defined as – Unincorporated association of two or more persons to pursue a business for profit as co-owners. A partnership is easy to form. Like a sole proprietorship forming when an individual starts business activity for revenue generation, a partnership is formed when two or more people start doing business for revenue generation. Being easy to form is one of the benefits of a partnership, flexibility of partnership agreement, and no double taxation being other benefits of a partnership. A big problem with general partnerships is the amount of personal liability to the partners.
