Partnerships recognized by a government authority can derive particular benefits from tax policy. Among developed countries, for example, business partnerships are often preferred in tax policy over corporates, as dividend taxes are only levied on profits before being distributed to partners. However, depending on the structure of the company and the jurisdiction in which it operates, the owners of a partnership may be more exposed to personal liability than they would as shareholders of a corporation. In these countries, partnerships are often governed by antitrust laws aimed at curbing monopolistic practices and promoting free competition in the market. However, the application of the law is very different. National partnerships, recognized by governments, generally also benefit from tax advantages. If something happens to a partner, there is an argument between the partners, or there is a change in the partnership, everyone needs to know “what happens when.” A partnership agreement is the best way to ensure that the business – and personal – part of the business can survive. The source of the initiation allowance is rarely seen outside of law firms. The principle is simply that each partner receives a share of the profits of the partnership up to a certain amount, distributing all the additional earnings to the partner responsible for “creating” the work that generated the profits.
 A partnership is an agreement where by which the parties designated as counterparties agree on cooperation in order to promote their common interests.Share