TN 12 (09-90)

RS 01802.300 Partnerships — General

A. Policy

Section 211(d) of the act provides that the terms “partnership” and “partner” shall have the same meaning as when used in the Internal Revenue Code (IRC). The IRC does not define the term “partnership”, but simply states (sec.171) that the term “includes a syndicate, group, pool, joint venture, or other unincorporated organization through or by means of which any business,financial operation or venture is carried on and which is not a corporation or a trust or estate”.

A partnership may exist for Social Security purposes even if the individuals do not operate under a formal partnership agreement or are not partners under State law, or even if forbidden under the laws of a particular State.

B. Definitions

1. Partnership

Two or more individuals joining together to carry on a trade or business.

2. Syndicate

  • Formed for a temporary purpose, ordinarily of a financial character.

  • Members contract with an agent for the control and management of a project.

  • Agreement calls for a division of profits and losses among the members according to a prescribed ratio.

3. Pool

  • Members contribute to a common fund, and;

  • Withdraw from the fund in a predetermined ratio.

4. Joint Venture

  • Two or more persons.

  • Undertakes a specific project, (usually a single transaction, rather than a continuing enterprise).

  • Where a profit is sought.

  • Without partnership designation.

5. Association

  • Often considered as an unincorporated society,or a body of persons acting as a corporation but without a corporate charter;

  • For coverage and tax purposes, may be considered a corporation if it has more corporate characteristics than not.

  • A professional association is a corporation organized in accordance with State Law.


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0301802300
RS 01802.300 - Partnerships -- General - 09/04/2012
Batch run: 09/04/2012
Rev:09/04/2012