Easy Questions  
Free Legal Documents

Orientation to Business Partnerships in Attica, OH

Orientation to Business Partnerships in Attica, OH


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 OH Partnership Download this Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Related Legal Services near Attica, OH
Rathburn & Associates
3163 S High St
Columbus, OH 43207
(614) 497-9918
Estate Planning Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Social Secur
Thompson C Richard Co LPA
371 Lexington Ave
Mansfield, OH 44907
(866) 950-9468
Attorneys, Criminal Law Attorneys, Wills, Trusts & Estate Planning Attorneys, Business Bankruptcy La
Reulbach Jr John L
14701 Detroit Ave # 575
Lakewood, OH 44107
(216) 227-9000
Attorneys, Legal Service Plans
The Sleibi Law Firm
13326 Madison Ave
Lakewood, OH 44107
(216) 521-8800
General Practice Attorneys, Attorneys
Beetham Rupert
110 S Main St
Cadiz, OH 43907
(740) 942-8282
Attorneys, General Practice Attorneys
Paar Amanda M
2500 Firstmerit Cir Tower
Akron, OH 44307
(330) 253-8242
General Practice Attorneys, Attorneys, Legal Service Plans
Costanzo Raymond J
13317 Madison Ave
Lakewood, OH 44107
(216) 226-8241
General Practice Attorneys, Attorneys, Legal Service Plans
Jerger Joseph L
362 Lexington Ave
Mansfield, OH 44907
(419) 756-7711
Attorneys, General Practice Attorneys, Legal Service Plans
Shannon G. Becker, LLC
1007 Lexington Ave
Mansfield, OH 44907
(419) 709-7577
Civil Litigation & Trial Law Attorneys, Estate Planning Attorneys, Attorneys, Business Law Attorneys
Endress & Endress Co
17119 Madison Ave
Lakewood, OH 44107
(216) 228-7550
Attorneys, Legal Service Plans
Canary Nancy H
12500 Edgewater Dr
Lakewood, OH 44107
(216) 226-7466
Attorneys
Brown & Szaller Co LPA
14222 Madison Ave
Lakewood, OH 44107
(216) 228-7200
Accident & Property Damage Attorneys, Attorneys
Murman Michael E
14701 Detroit Ave
Lakewood, OH 44107
(216) 228-6996
Attorneys, General Practice Attorneys, Legal Service Plans
Bayer Jerger & Underwood
362 Lexington Ave
Mansfield, OH 44907
(877) 776-6797
Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Probate Law Attorney
Mark Kindt
16004 Detroit Ave
Lakewood, OH 44107
(216) 521-6024
Attorneys, General Practice Attorneys
Franco Robert A.
1007 Lexington Ave
Mansfield, OH 44907
(419) 524-5938
Elder Law Attorneys, Attorneys
Tzangas Plakas Mannos & Raies
2500 Firstmerit Cir Tower
Akron, OH 44307
(330) 784-5466
Accident & Property Damage Attorneys,  Attorneys,  General Practice Attorneys,  Legal Service Plans
Thompson C Richard
371 Lexington Ave
Mansfield, OH 44907
(419) 522-5297
Bankruptcy Law Attorneys, Probate Law Attorneys, Attorneys
T. Michele Lynch
13317 Madison Ave
Lakewood, OH 44107
(216) 226-5090
Attorneys,  Bankruptcy Services,  Bankruptcy Law Attorneys,  General Practice Attorneys,  Legal Serv
Roose & Ressler LPA
1221 S Trimble Rd Suite A-2
Mansfield, OH 44907
(855) 238-5041
Civil Litigation & Trial Law Attorneys,  Attorneys,  Social Security & Disability Law Attorneys,  Ap
Maria L. Shinn, LLC
14837 Detroit Avenue, #282
Lakewood, OH 44107
(216) 228-4791
Estate Planning Attorneys, Attorneys, Probate Law Attorneys
Feighan & Feighan Law Offices
14516 Detroit Ave
Lakewood, OH 44107
(216) 226-4747
General Practice Attorneys, Attorneys
Bass-Lyons Meeta
105 Jamison Ave
Cadiz, OH 43907
(740) 942-3700
Attorneys, General Practice Attorneys
Waag Christian F
14701 Detroit Ave # 540
Lakewood, OH 44107
(216) 221-3100
Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US