Easy Questions  
Free Legal Documents

Orientation to Business Partnerships in Albany, NY

Orientation to Business Partnerships in Albany, NY


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
New York Partnership
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Related Legal Services near Albany, NY
Bosman and Associates Pll
1 Executive Centre Dr
Albany, NY 12203
(518) 464-9958
General Practice Attorneys, Legal Service Plans, Attorneys
Ford Jr Donald P
20 Corporate Woods Blvd # 7
Albany, NY 12211
(518) 455-9952
General Practice Attorneys, Attorneys
Monroe Kelly M
20 Corporate Woods Blvd # 7
Albany, NY 12211
(518) 455-9952
General Practice Attorneys, Attorneys
Jeffers F Patrick
435 New Karner Rd
Albany, NY 12205
(518) 464-9874
Attorneys, Legal Service Plans
Maguire Richard R
16 Sage Est # 208
Albany, NY 12204
(518) 434-9807
General Practice Attorneys, Attorneys
Ganz Wolkenbreit Friedman LLP
1 Columbia Cirste 2
Albany, NY 12203
(518) 869-9500
Legal Service Plans, Business Litigation Attorneys, Collection Law Attorneys, General Practice Attor
Carey Beth E
1 Columbia Cir
Albany, NY 12203
(518) 869-9500
Probate Law Attorneys, Attorneys
Roche Robert
36 S Pearl St
Albany, NY 12207
(518) 436-9370
General Practice Attorneys, Attorneys, Legal Service Plans
Brousseau, Shawn F - Napierski Vandenburgh & Napier
296 Washington Avenue Ext
Albany, NY 12203
(518) 862-9292
Attorneys, Legal Service Plans
Dolan Mark J
296 Washington Avenue Ext
Albany, NY 12203
(518) 862-9292
General Practice Attorneys, Attorneys
The Rose Law Firm P
501 New Karner Rd Ste 7
Albany, NY 12205
(518) 869-9200
General Practice Attorneys, Attorneys, Legal Service Plans
We the People
133 Wolf Rd Ste 1
Albany, NY 12205
(518) 435-9110
Family Law Attorneys, Divorce Assistance, Attorneys
Meyers Richard M
1734 Western AVE
Albany, NY 12203
(518) 464-9075
General Practice Attorneys, Attorneys
Donohue Sabo Varley & Huttner
24 Aviation Rd Ste 205
Albany, NY 12205
(518) 458-8922
Attorneys,  Consumer Law Attorneys,  Accident & Property Damage Attorneys,  County & Parish Governme
Cohen, Laurie T - Wilson Elser Moskowitz Edelman
677 Broadway # 901
Albany, NY 12207
(518) 449-8893
Administrative & Governmental Law Attorneys, Attorneys, Legal Service Plans
Piscitelli Anthony
677 Broadway
Albany, NY 12207
(518) 449-8893
Litigation & Tort Attorneys, Attorneys
Rosenberg Philip
677 Broadway # 901
Albany, NY 12207
(518) 449-8893
Attorneys, Business Law Attorneys, Justice Courts, Corporation & Partnership Law Attorneys, Medical
WILSON; ELSER, MOSKOWITZ,EDELMAN & DICKER LLP
677 Broadway Ste 1
Albany, NY 12207
(518) 449-8893
Corporation & Partnership Law Attorneys, Business Law Attorneys, Product Liability Law Attorneys, Ju
Thomas, Mark - Wilson Elser Moskowitz Edelman
677 Broadway
Albany, NY 12207
(518) 449-8893
Attorneys, Medical Law Attorneys, Corporation & Partnership Law Attorneys, Business Law Attorneys, P
Legal Services
173 Madison Ave
Albany, NY 12202
(518) 376-8818
Attorneys Referral & Information Service
Barone Michael S
798 Lancaster St
Albany, NY 12203
(518) 489-8596
Attorneys, Legal Service Plans
O'Connell & Aronowitz
54 State St Ste 9,Ste 9
Albany, NY 12207
(518) 290-8327
Bankruptcy Law Attorneys,  Personal Injury Law Attorneys,  Product Liability Law Attorneys,  Litigat
Frank C. Kiepura PC
116 Everett Rd Ste 3
Albany, NY 12205
(518) 459-8299
General Practice Attorneys, Attorneys, Tax Return Preparation
Kohn Richard
74 Chapel St
Albany, NY 12207
(518) 458-8080
General Practice Attorneys, Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US