8. BANK. All funds in the partnership are deposited in their name into the current account or current accounts designated by the partners. All payments must be made by cheque signed by one of the two partners. 9. BOOKS. Partnership logs are kept at the partnership headquarters and each partner has access to them at all times. The accounts are kept on the basis of a financial year, the _____ In the absence of a partnership agreement, partners may disagree on how to manage the operation. A written partnership agreement outlining core business practices can help mitigate future conflicts before they begin. Federal tax audit rules allow the Internal Revenue Service (IRS) to treat partnerships as subject entities and review them at the partnership level, rather than conducting individual audits of partners.

This means that, depending on the size and structure of the partnership, it is possible for the IRS to audit the partnership as a whole, instead of auditing each partner individually. This agreement also allows you to anticipate and resolve potential business disputes, prepare for certain business contingencies, and clearly define partners` responsibilities and expectations. 11. DEATH. After the death of one of the two partners, the surviving partner has the right either to acquire the deceased`s shares in the partnership or to terminate the partnership activity and liquidate. If the surviving partner chooses to acquire the deceased`s shares, he or she must transmit this choice in writing to the executor or administrator of the deceased within three months of the death of the deceased or, if no legal representative has been appointed at the time of such election, to one of the legal heirs known to the deceased at the last known address of that heir. (a) where the surviving partner decides to acquire the deceased`s shares in the partnership, the purchase price corresponds to the deceased`s balance sheet at the time of his death, increased by the deceased`s balance sheet at the end of the preceding financial year, increased by his share of the share of the share of the social profit or reduced by his share in the social losses for the period beginning at the beginning of the financial year; during which his death occurred until the end of the calendar month in which his death occurred and decreased by withdrawals that were debited from his income account during that period. Commercial or corporate assets, trade names, patents or other intangible assets are not taken into account unless these assets were recorded in the partnership registers immediately before the death of the deceased; However, the beneficiary has the right to use the business name of the partnership. (b) Unless otherwise specified, the winding-up and asset allocation procedure of the twinning undertaking shall be the same as that set out in paragraph 10 with regard to voluntary termination.

Any group of individuals entering into a business partnership, whether it is family, friends or random acquaintances on the Internet, should invest in a partnership agreement. This agreement gives individuals greater control over how their partnerships are managed on a day-to-day basis and managed at a long-term strategic level….