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what is a de facto partnership or an accidental partnership thats when two people carry on a business as co-owners for profit they dont do any registration theyve never set up a formal partnership they dont have an LLC or an S corporation or C corporation instead its two people who are working in business together for profit the law says that if you do that you are in a partnership its often called an accidental partnership or a de facto partnership because the people dont realize all of a sudden this happens now when does this happen well this might be two people who are working together on a business thats a simple example it also often arises when two companies work together now what happens if you have a contract its possible that contract would clarify that this is not a partnership and an attorney could make sure that it doesnt have the elements of a partnership but its important to remember that were two people or two organizations or two companies are working togeth
