Easy Questions  
Free Legal Documents

Orientation to Business Partnerships in Attica, KS

Orientation to Business Partnerships in Attica, KS


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 KS Partnership Download this Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Related Legal Services near Attica, KS
Colgan Law Firm
11006 Parallel Pkwy Ste 202
Kansas City, KS 66109
(913) 721-9999
Divorce Attorneys, Attorneys
Consumer Law Center PA
3706 SW Topeka Blvd
Topeka, KS 66609
(785) 266-9920
Divorce Attorneys,  Attorneys,  Family Law Attorneys,  General Practice Attorneys
Tonkin Jeffrey B Atty
11904 Mohawk Ln
Leawood, KS 66209
(913) 491-9410
Attorneys
Gaughan Cundiff Herman & Connealy
6731 W 121st St Ste 210
Leawood, KS 66209
(913) 498-9146
Accident & Property Damage Attorneys,  Attorneys,  Real Estate Attorneys,  Personal Injury Law Attor
Colgan Law Firm LLC
11006 Parallel Pkwy Ste 202
Kansas City, KS 66109
(913) 730-9082
Attorneys,  Personal Injury Law Attorneys,  Criminal Law Attorneys,  DUI & DWI Attorneys,  Family La
Robert R Laing Jr
2100 Hutton Rd
Kansas City, KS 66109
913-284-0186
Attorneys,  Criminal Law Attorneys,  Divorce Attorneys,  General Practice Attorneys,  Insurance,  Le
Michael J Studtmann P.A.
6235 W Kellogg Dr
Wichita, KS 67209
(316) 942-8400
Personal Injury Law Attorneys, Attorneys, Criminal Law Attorneys
Robert R Laing Jr
2100 Hutton Rdste 102
Kansas City, KS 66109
(913) 815-8347
Attorneys, Criminal Law Attorneys, Family Law Attorneys, Divorce Attorneys, General Practice Attorne
Minihan Shawn E
3706 SW Topeka Blvd # 300
Topeka, KS 66609
(785) 267-6444
Attorneys, General Practice Attorneys
Kathleen A Harvey
7011 W 121st St Ste 102
Leawood, KS 66209
(913) 491-6331
Attorneys
Harvey Law Firm
7011 W 121st. Ste. 102 , Overland Park
Leawood, KS 66209
(913) 491-6331
Immigration Law Attorneys
Wendy Marvin Law Office
6731 W 121st St
Leawood, KS 66209
(913) 312-5660
Attorneys, General Practice Attorneys, Legal Service Plans
Uzo L. Ohaebosim
6235 W. Kellogg
Wichita, KS 67209
(316) 261-5400
Consumer Law Attorneys,  Accident & Property Damage Attorneys,  Civil Litigation & Trial Law Attorne
Williamson Law Firm, LLC
6235 W. Kellogg
Wichita, KS 67209
(316) 261-5400
Accident & Property Damage Attorneys,  Civil Litigation & Trial Law Attorneys,  Personal Injury Law
John F Michaels Chartered
4252 W 124th Ter
Leawood, KS 66209
(913) 663-4455
Attorneys, Legal Service Plans
Carroll Michele I
4252 W 124th Ter
Leawood, KS 66209
(913) 663-4455
Attorneys
Harvey & Caldwell, PA
7011 W 121st St Ste. 201
Leawood, KS 66209
(913) 451-4400
Accountants-Certified Public,  Tax Return Preparation,  Accounting Services,  Tax Return Preparation
Smith Ronald D
3706 SW Topeka Blvd
Topeka, KS 66609
(785) 266-4220
Attorneys
Kreamer Karen
12616 Juniper Cir
Leawood, KS 66209
(913) 469-4066
Attorneys
Snyder Law Firm
13401 Mission Rd Ste 207
Leawood, KS 66209
(913) 685-3900
Attorneys, General Practice Attorneys, Legal Service Plans
Shalton Solutions
12008 Overbrook Rd
Leawood, KS 66209
(913) 663-3318
Attorneys
Elkins Marc E
13020 El Monte St
Leawood, KS 66209
(913) 897-2857
Attorneys
Fowler Law Firm
6740 W 121st St # 300
Leawood, KS 66209
(913) 498-2800
Attorneys, General Practice Attorneys, Legal Service Plans
Mccauley James
10673 166th Rd
Mayetta, KS 66509
(785) 966-2341
Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US