What is the legal definition of a business partnership?

In Arizona, a business partnership is defined as an agreement among two or more individuals to work together to create a business. Each partner contributes money, labor, time, property, or other assets to the business in exchange for an ownership stake, or share of the profits, of the business. The partners must agree on the structure of the partnership, including how the business will be managed and how profits will be divided. A business partnership is a type of unincorporated business, meaning that the business itself is not an entity recognized by the law. Partners are jointly and severally liable for the obligations of the business, meaning each partner is legally responsible for the entire debt of the business. This includes any unpaid taxes, court judgments, and legal debts the business may owe to individuals or other entities. Partners in a business partnership have rights and responsibilities outlined in their partnership agreement. This agreement should include the details of the sharing of profits, services, ownership, decision making, and dispute resolution. It is important that the partnership agreement sets forth the duties and obligations of each partner so that all partners know what is expected of them. Partners are legally obligated to carry out their obligations stated in the agreement. Partnerships in Arizona must comply with other legal requirements, such as taxation, filing annual reports, or obtaining licenses and permits. By understanding the legal definition of a partnership, individuals can create a business with partners that is legally recognized in Arizona.

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What is the legal definition of a business partnership?

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