What is the difference between partnership and co ownership?

People often get confused between these two terms. I have heard people who use the terms partnership and co ownership synonymously. But did you know the difference between partnership and co ownership exists. In this answer we will understand the difference between the two terms and the basis on which they differ.

There are a few factors which establish the distinction between partnership and co ownership. These factors are:

Now that we have ascertained factors of difference between partnership and co ownership, let us look at what is the actual meaning of partnership and co ownership.

Partnership is understood as an association between two or more people which arises out of a common interest to earn profit. Co ownership, however is a joint ownership of a property which may arise out of no business motive.

I hope the difference between partnership and co ownership is clear now.

The difference between co ownership and partnership

is as follows:

:

• A partnership is primarily a business relationship where two or more individuals or entities come together to carry on a business.

• Partnerships can be registered or unregistered. While registration is not mandatory.

• In a partnership, partners have unlimited personal liability.

• Partnerships are typically managed by the partners themselves.

• Partnerships are not separate legal entities for tax purposes.

• It

  can be dissolved by mutual agreement, bankruptcy of a partner, or as specified in the partnership agreement.

:

• Co-ownership refers to the joint ownership of property, by two or more individuals or entities.

• Co-ownership may or may not involve registration, depending on the nature of the property.

• Co-owners are typically not personally liable for each other's actions or debts related to the co-owned property.

• Co-owners can make decisions collectively or as outlined in the co-ownership agreement.

• Co-ownership may not have a direct tax implication.

• Co-owners can sell or transfer their share of ownership in the property.

This is the difference between co ownership and partnership

.

Read more

Co-ownership and a partnership are two separate terms. Co-ownership is the term used to describe when more than one individual owns an area of property. In a partnership, two or more people work together to run a single enterprise for profit. Shreya Singha has explained the difference based on 5 factors. Scroll down to get more information on Co ownership vs Partnership.

Partnership vs Co ownership

Check out the difference between partnership and ownership below:

I hope you got an understanding of partnership and co ownership difference. If you have more queries, you can mention them in the comment section below.