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Where two or more individuals own a business collectively however have failed to organize a more specialised form of car, they will be handled as a common partnership. The phrases of a partnership are partly governed by a partnership settlement if one is created, and partly by the law of the jurisdiction where the partnership is positioned. No paperwork or filing is critical to create a partnership, and without an agreement, the relationships and legal rights of the partners might be completely ruled by the regulation of the jurisdiction the place the partnership is located. A single person who owns and runs a business is usually often identified as a sole proprietor, whether or not that person owns it instantly or through a formally organized entity. 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