Easy Questions  
Free Legal Documents

Orientation to Business Partnerships in Albemarle, NC

Orientation to Business Partnerships in Albemarle, NC


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.

 
Personalize & Print a Free NC Partnership Download this Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Related Legal Services near Albemarle, NC
Brown Elizabeth M
120 King Ave
Albemarle, NC 28001
(704) 982-8558
Criminal Law Attorneys, Attorneys
Lowder Mark T
120 King Ave
Albemarle, NC 28001
(704) 982-8558
Estate Planning Attorneys, Attorneys, Family Law Attorneys, Divorce Attorneys, Wills, Trusts & Estat
Fulcher Law Firm
136 S 2nd St
Albemarle, NC 28001
(704) 234-7789
Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Social Security & Disability Law Attorneys,  
Fulcher Stacy D
136 S 2nd St
Albemarle, NC 28001
(704) 234-7789
General Practice Attorneys, Attorneys, Legal Service Plans
John Bahner
118 E Main St
Albemarle, NC 28001
(704) 978-7175
Attorneys, Bankruptcy Law Attorneys, Criminal Law Attorneys
Singletary Jr E Earl
112 E South St
Albemarle, NC 28001
(704) 983-6900
Wills, Trusts & Estate Planning Attorneys, Attorneys, Criminal Law Attorneys, Family Law Attorneys,
Singletary Jr H Earl
112 E South St
Albemarle, NC 28001
(704) 983-6900
Wills, Trusts & Estate Planning Attorneys, Attorneys, Criminal Law Attorneys, Family Law Attorneys,
Pastorini Vita A
120 King Ave
Albemarle, NC 28001
(704) 986-4119
General Practice Attorneys, Attorneys
Bahner John M
118 E Main St
Albemarle, NC 28001
(704) 983-3128
Criminal Law Attorneys, Attorneys, Family Law Attorneys, Bankruptcy Law Attorneys, Legal Service Pla
Mock Phillips Karmen
117 W North St
Albemarle, NC 28001
(704) 983-2709
Attorneys, Paralegals, Family Law Attorneys, Divorce Attorneys, Legal Service Plans
Trull J Kent
117 W North St
Albemarle, NC 28001
(704) 983-2709
Attorneys, General Practice Attorneys
Phillips James A Jr
810 Ridge St
Albemarle, NC 28001
(704) 982-2240
Attorneys
Brown Brown & Brown PLLC
101 S 2nd St
Albemarle, NC 28001
(704) 982-2141
Wills, Trusts & Estate Planning Attorneys,  Attorneys,  Criminal Law Attorneys,  Real Estate Attorn
Hopkins Sam
305 S 2nd St
Albemarle, NC 28001
(704) 983-1168
Attorneys, Criminal Law Attorneys, General Practice Attorneys, Legal Service Plans
Odom Robert W
125 N 4th St
Albemarle, NC 28001
(704) 982-1119
Real Estate Attorneys, Attorneys, General Practice Attorneys, Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US