12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents
 
 
FINANCIAL & MARITAL

Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!
 
 

Orientation to Business Partnerships in Ava, NY

Orientation to Business Partnerships in Ava, 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.

 
Personalize & Print a Free NY Partnership Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Related Legal Services near Ava, NY
Bosman and Associates Pll
1 Executive Centre Dr
Albany, NY 12203
(518) 464-9958
General Practice Attorneys, Legal Service Plans, Attorneys
Kizner Gail Ann
32 Union Sq E # 612
New York, NY 10003
(212) 330-9808
Attorneys, Legal Service Plans
The Hinds Firm
546 E 42nd St
Brooklyn, NY 11203
(718) 473-9767
Attorneys, Personal Injury Law Attorneys, Landlord & Tenant Attorneys, Criminal Law Attorneys, Immig
R J Brown Planning
723 James St
Syracuse, NY 13203
(315) 234-9703
Real Estate Attorneys, Attorneys
Bantle & Levy LLP
817 Broadway # 6
New York, NY 10003
(212) 228-9666
Attorneys, Legal Service Plans
Preve Kristin M
237 Main St
Buffalo, NY 14203
(716) 853-9555
Attorneys, Legal Service Plans
Mahnoush Deilami Law
3188 38th St
Astoria, NY 11103
(646) 561-9525
Immigration Law Attorneys
Carey Beth E
1 Columbia Cir
Albany, NY 12203
(518) 869-9500
Probate Law 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
Beck Liebman Petrone PC
399 Knollwood Rd Ste 311
White Plains, NY 10603
(914) 285-9500
General Practice Attorneys, Attorneys, Legal Service Plans
International Institute
767 Maple St
Brooklyn, NY 11203
(347) 461-9305
Immigration Law Attorneys, Attorneys, Immigration & Naturalization Consultants, Legal Service Plans
Dolan Mark J
296 Washington Avenue Ext
Albany, NY 12203
(518) 862-9292
General Practice Attorneys, Attorneys
Brousseau, Shawn F - Napierski Vandenburgh & Napier
296 Washington Avenue Ext
Albany, NY 12203
(518) 862-9292
Attorneys, Legal Service Plans
Lever & Stolzenberg, LLP
303 Old Tarrytown Rd
White Plains, NY 10603
(877) 288-9191
Personal Injury Law Attorneys,  Attorneys,  Labor & Employment Law Attorneys,  Insurance Attorneys,
RCF Is US
89 5th Ave
New York, NY 10003
(212) 206-9099
Corporation & Partnership Law Attorneys, Attorneys, Business Law Attorneys
Meyers Richard M
1734 Western AVE
Albany, NY 12203
(518) 464-9075
General Practice Attorneys, Attorneys
Fredman Neil A
250 North Rd
White Plains, NY 10603
(914) 997-9070
General Practice Attorneys, Attorneys, Legal Service Plans
Kasdon James E
112 E 19th St
New York, NY 10003
(212) 777-8887
General Practice Attorneys, Attorneys
Smith, Murphy & Shoepperle, Atty
295 Main St
Buffalo, NY 14203
(716) 262-8871
Attorneys,  Transportation Law Attorneys,  Civil Litigation & Trial Law Attorneys,  Personal Injury
Brooks, Stephen P Smith Murphy & Schoepperle
295 Main St # 786
Buffalo, NY 14203
(716) 262-8871
Attorneys, Legal Service Plans, Transportation Law Attorneys, Personal Injury Law Attorneys, Civil L
Dettmer Frederick R
340 Corlies Ave
Pelham, NY 10803
(914) 738-8782
Attorneys, Legal Service Plans
Simon Eisenberg & Baum, LLP
24 Union Sq E Fl 5th
New York, NY 10003
(212) 353-8700
Attorneys, Labor & Employment Law Attorneys, Corporation & Partnership Law Attorneys, Employee Benef
K Dean Hubbard Jr
113 University Pl
New York, NY 10003
(212) 473-8700
Attorneys
Deilami Boutique Law Firm
3188 38th street
Astoria, NY 11103
(646) 363-8684
Immigration Law Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US