Easy Questions  
Free Legal Documents

Orientation to Business Partnerships in Alsey, IL

Orientation to Business Partnerships in Alsey, IL


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 IL Partnership Download this Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Related Legal Services near Alsey, IL
Hanson & Peters
1000 Hart Rd Fl 300
Barrington, IL 60010
(847) 277-9988
General Practice Attorneys, Legal Service Plans, Attorneys
Susan Poplar Law Office
330 E Main St Ste 207
Barrington, IL 60010
(847) 381-9588
Attorneys, General Practice Attorneys, Real Estate Attorneys, Estate Planning Attorneys
Covey Bankruptcy Law Firm, P.C.
232 S Batavia Ave Uppr
Batavia, IL 60510
(630) 879-9559
Foreclosure Services,  Business Bankruptcy Law Attorneys,  Bankruptcy Services,  Bankruptcy Law Atto
Bernstein Deberah L
330 E Main St
Barrington, IL 60010
(847) 304-9533
General Practice Attorneys, Attorneys, Legal Service Plans
Lovig Elizabeth
428 S Batavia Ave
Batavia, IL 60510
(630) 326-9500
General Practice Attorneys, Attorneys, Legal Service Plans
Terrence Michael Johnson Law
66 Flint Dr
Lake Barrington, IL 60010
(847) 381-9370
General Practice Attorneys, Attorneys, Legal Service Plans
Kelleher & Buckley
102 S Wynstone Park Dr # 100
North Barrington, IL 60010
(847) 382-9130
Estate Planning Attorneys,  Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Business Law At
Robins Martin B
1000 Hart Rd Ste 220
Barrington, IL 60010
(847) 229-8710
General Practice Attorneys, Attorneys, Legal Service Plans
Joseph Lucas & Assoc
224 W Main St
Barrington, IL 60010
(847) 381-8700
Estate Planning Attorneys, Attorneys, Family Law Attorneys, Legal Service Plans, Tax Attorneys, Divo
Pierce Christopher
312 E Lincoln Ave
Barrington, IL 60010
(847) 382-8640
General Practice Attorneys, Attorneys
Giampoli Frank J
428 S Batavia Ave
Batavia, IL 60510
(630) 406-8640
General Practice Attorneys, Attorneys, Legal Service Plans
Meroni & Meroni PC
5 Bellwood Dr
Barrington, IL 60010
(847) 805-8403
Patent, Trademark & Copyright Law Attorneys,  Attorneys,  Patent Agents,  Personal Property Law Att
Belvedere Josette
1312 N La Salle Dr
Chicago, IL 60610
(312) 337-8296
General Practice Attorneys, Attorneys
Hinrichs Timothy C
476 S Prairie St
Bethalto, IL 62010
(618) 377-8252
Attorneys, Family Law Attorneys, Wills, Trusts & Estate Planning Attorneys, Corporation & Partnershi
Total Attorneys - Personal Injury
PO Box 274216
Arcola, IL 61910
(217) 666-7862
Attorneys, Legal Service Plans
Melody B. Davoust
715 Hunter Dr
Batavia, IL 60510
(630) 879-7007
Attorneys,  Family Law Attorneys,  Litigation & Tort Attorneys,  Adoption Law Attorneys,  Civil Liti
Carroll Law Offices PC
510 S Batavia Ave
Batavia, IL 60510
(630) 406-6933
General Practice Attorneys, Attorneys
Boehm & Boehm
201 W Main St
Barrington, IL 60010
(847) 381-6857
Estate Planning Attorneys, Attorneys, Family Law Attorneys, Divorce Attorneys, Business Law Attorney
Christopher Agrella Law Office
330 E Main St
Barrington, IL 60010
(847) 381-6800
Attorneys,  General Practice Attorneys,  Legal Service Plans,  Criminal Law Attorneys
Christopher Cooper, Inc. (Civil Rights Practice, Chicago)
1140 N La Salle Dr
Chicago, IL 60610
(312) 371-6752
Attorneys, Labor & Employment Law Attorneys, Employee Benefits & Worker Compensation Attorneys
Irene Clarke David
18 E Dundee Rd Building 6
Barrington, IL 60010
(847) 382-6620
Attorneys, Estate Planning Attorneys, Wills, Trusts & Estate Planning Attorneys
Anderson IV William M
625 S Main St
Creve Coeur, IL 61610
(309) 694-6250
Attorneys,  Criminal Law Attorneys,  Mediation Services,  Legal Service Plans
Youssi & Youssi Ltd
150 Houston St
Batavia, IL 60510
(630) 879-5777
Attorneys
Michael T. Schulenberg
428 S Batavia Ave
Batavia, IL 60510
(630) 487-5692
Attorneys, Family Law Attorneys, Divorce Attorneys, General Practice Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US