Glossary Terms

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Partnership

An informal association of two or more individuals normally created by a private partnership agreement. There is no limited liability afforded to the partners, although the partnership agreement can provide indemnification rights to all or some of the partners.

Partnership Agreement

A private agreement between partners that establishes a partnership and governs the terms and conditions of the partnership relationship.

Pass-Through Taxation

All income and profits are passed through the entity to the owner and this income is only taxed one time. LLCs provide this tax benefit to their owners.

Passive Income

Income generated from the licensing of intangible assets, like intellectual property.

Passive Income Assets

Intellectual property such as trademarks, patents, copyrights, and royalties.

Principal Place of Business

The actual, physical location wherein a company conducts the greatest portion of its business. Not the same as Registered Office.

 

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