Legal Definitions - partnership association

A partnershipassociation is a type of business organization that combines the characteristics of a limited partnership and a close corporation. It is only recognized by law in a few states.

For example, in California, a partnership association is a legal entity that allows for limited liability protection for its partners, similar to a limited liability company (LLC). However, it also has the flexibility and tax benefits of a partnership.

Another example is in Texas, where a partnership association is a hybrid entity that combines the limited liability protection of a corporation with the tax benefits of a partnership.

These examples illustrate how a partnership association can provide the benefits of both a limited partnership and a close corporation, while also offering unique advantages depending on the state in which it is formed.