Easy Questions  
Free Legal Documents

Orientation to Business Partnerships in Adin, CA

Orientation to Business Partnerships in Adin, CA


Finding good partners is the key to success in anything: in business, in marriage and, especially, in investing.
 
- Robert Kiyosaki


A partnership is a business that has more than one owner that has not filed papers for becoming a corporation or Limited Liability Company (LLC). Partnerships have two basic types, a general partnership and a limited partnership. A general partnership is the simplest and less costly co-owned business structure to create and maintain. In a general partnership, every partner has a hand in managing the business.

Important Facts Regarding Business Partnership

Personal Liability for all Owners

As co-owner of the business, all partners are liable for all business obligations and debts. This includes court judgment in the case the business cannot pay a creditor like a supplier, lender, or landlord. The creditor can legally go after the partners' possessions like their houses, cars and bank accounts. This personal liability has few exceptions. If the partnership is deemed limited, some of the partners will have less personal liability. A limited partnership has a general partner who has personal liability and who is the one running the business and the passive investors who are limited partners. Entrepreneurs who are concerned about personal liability should choose to incorporate or operate as a limited liability company (LLC) instead of a partnership.

Joint Authority

As partners in a business, any contract or business conducted by any individual partner usually binds the whole business and all partners to that contract. If the terms of the contract are onerous or unfavorable, as a partner, you will personally be held accountable for the contractual obligations. There are only a few limitations to a partner's ability to make a commitment to a deal - for example, a partner acting alone cannot bind the partnership to a sale of all the assets of the partnership. But generally, all transactions done by any individual partner, will bind all the other partners to the deal.

Joint Liability

Any business debt has binding effects on all partners, and each individual partner can be sued or required to pay in full the amount of the business debt. With this kind of personal liability for authority and partnership debt, it is very important that trust is the foundation for starting a business with a partner.

Partnership Taxes

A partnership does not pay any income tax on the profit because the business income "passes through" the business to the partners who report their profit and losses on their individual income tax returns.

Creating a Partnership

Agreeing to go on a business with another person is the first step in setting up a partnership. Paper work is not involved at this stage.

Like most new businesses, you and your partner should meet the requirements of your local registration, mostly by paying a minimum tax. Obtain an employer identification number from the IRS, secure a sellers license from your state and from the local planning board, a zoning permit. An assumed or fictitious name should also be registered.

Partnership has also some disadvantages, one of which is when a partner decides to leave the company, the partnership generally dissolves. The remaining partner will be saddled with the responsibility for all remaining business obligations until the remaining assets and profits are divided among themselves. Partners can create a buy-sell agreement or buy-out agreement as part of the partnership agreement. This will help partners decide if business should persist and then make the transition, if one partner leaves, retires or decides to pursue other interests.

 
Edit, Download, & Print a Free
California Partnership
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Related Legal Services near Adin, CA
Klika Parrish & Bigelow
959 E Walnut St
Pasadena, CA 91106
(626) 796-9998
General Practice Attorneys, Attorneys, Legal Service Plans
Walton Lorrie A
2300 E Katella Ave # 435
Anaheim, CA 92806
(714) 978-9988
General Practice Attorneys, Attorneys
Warshaw Adam
1918 W Magnolia Blvd # 101
Burbank, CA 91506
(818) 972-9927
Construction Law Attorneys, Attorneys
Schwartz Law Offices
9000-S Crow Canyon Road, No. 399
Danville, CA 94506
(831) 331-9909
Bankruptcy Law Attorneys,  Business Litigation Attorneys,  Divorce Attorneys,  Estate Planning Attor
Kobernick Todd E
2448 Historic Decatur Rd
San Diego, CA 92106
(619) 224-9889
Attorneys, Legal Service Plans
Lum A Justin
1005 E Colorado Blvd # 209
Pasadena, CA 91106
(626) 395-9888
Patent, Trademark & Copyright Law Attorneys, Attorneys, General Practice Attorneys, Legal Service Pl
Perera J Rex
900 W 17th St
Santa Ana, CA 92706
(714) 550-9830
Immigration Law Attorneys, Immigration & Naturalization Consultants, Attorneys
Cero Debts
1475 S State College Blvd
Anaheim, CA 92806
(714) 780-9756
Attorneys,  Business Bankruptcy Law Attorneys,  Bankruptcy Law Attorneys,  Bankruptcy Services
Mccabe Patricia
7100 Hayvenhurst Ave
Van Nuys, CA 91406
(818) 907-9726
Attorneys, Social Security & Disability Law Attorneys, General Practice Attorneys, Legal Service Pla
David J. Givot
3780 Kilroy Airport Way Suite 200
Long Beach, CA 90806
888-293-0396
DUI & DWI Attorneys,  Drug Charges Attorneys,  Legal Service Plans,  Criminal Law Attorneys,  Attorn
Accident Recovery Legal Center Of Northern California
1184 Monroe St
Salinas, CA 93906
(888) 931-9675
Employee Benefits & Worker Compensation Attorneys,  Accident & Property Damage Attorneys,  Personal
Aria Law Group A Professional Law Corporation
260 Sheridan Avenue Suite 200
Palo Alto, CA 94306
(650) 391-9630
Business Law Attorneys,  Personal Injury Law Attorneys,  Estate Planning, Probate, & Living Trusts
Rosenberg Jas
1702 N Main St
Santa Ana, CA 92706
(714) 953-9561
General Practice Attorneys, Attorneys
Matthew C. Mullhofer
2107 N Broadway
Santa Ana, CA 92706
(866) 698-9478
Attorneys, Tax Attorneys, Real Estate Attorneys, Legal Service Plans, Estate Planning Attorneys
Niswonger J
3233 Arlington Ave
Riverside, CA 92506
(951) 367-9441
General Practice Attorneys, Attorneys, Legal Service Plans
Joseph P Connolly Inc
1616 23rd St
San Pablo, CA 94806
(510) 234-9436
General Practice Attorneys, Attorneys
Paralegals Who Care
12535 Oxnard St Apt 201
North Hollywood, CA 91606
(818) 505-9436
Paralegals
Peters Carol Atty
1100 E Green St # 1
Pasadena, CA 91106
(626) 793-9383
Attorneys, Legal Service Plans, Criminal Law Attorneys, Litigation & Tort Attorneys, Estate Planning
Attorney Assistance
2100 Embarcadero
Oakland, CA 94606
(510) 893-9333
Attorneys Referral & Information Service, General Practice Attorneys, Attorneys
Cleveland & Metz
3890 11th Street
Riverside, CA 92506
(951) 275-9262
Workers Compensation Assistance,  Accident & Property Damage Attorneys,  Employee Benefits & Worker
Corrons-Hickey & Hickey
930 W 17th St
Santa Ana, CA 92706
(714) 550-9211
Bankruptcy Services,  Attorneys,  General Practice Attorneys,  Legal Service Plans,  Bankruptcy Law
We The People
963 E Colorado Blvd
Pasadena, CA 91106
(626) 219-9200
Paralegals, Legal Document Assistance, Attorneys
Hurr Lauren S
19725 Sherman Way
Winnetka, CA 91306
(818) 812-9192
Bankruptcy Law Attorneys, Attorneys
Sun Raymond
20 Corporate Park # 155
Irvine, CA 92606
(949) 252-9180
General Practice Attorneys, Attorneys, Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US