What laws govern the formation of business partnerships?

In Arizona, partnerships are governed by the Uniform Partnership Act (UPA) and the Arizona Revised Statutes (ARS) Title 29, Chapter 2. According to the UPA, two or more people can form a partnership as long as they agree to share profits and losses, contribute resources, and participate in the management of the business. Under Arizona law, all partners must contribute money, property, or services in exchange for an ownership stake in the business. Additionally, all partners must be able to conduct the business and enter into contracts on behalf of the partnership. Partners can also decide on the size and scope of their partnership. They can agree on the duration of the partnership, how much control each partner has over the business, and how profits and losses are divided. This is typically done by creating a partnership agreement, which must be signed by all partners and filed with the state. The agreement must also include the partners’ liability for debts and obligations. If the partners are not able to pay the debts, the creditors can seek recourse from the partnership as a whole. Under Arizona law, partners must also register their partnership with the Arizona Corporation Commission. This registration is necessary to protect the partners from liability and establish the partnership as a separate legal entity. Failure to register a partnership can result in penalties, including fines and interest charges.

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What laws govern the formation of business partnerships?

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