Easy Questions  
Free Legal Documents

Orientation to Business Partnerships in Baraboo, WI

Orientation to Business Partnerships in Baraboo, WI


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.

 
Edit, Download, & Print a Free
Wisconsin Partnership
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Related Legal Services near Baraboo, WI
Conway & Seefeld
121 5th St
Baraboo, WI 53913
(608) 356-9441
Bankruptcy Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Divorce Attorneys,  Probate Law Atto
Meier, Kristie S - Conway & Seefeld
121 5th St
Baraboo, WI 53913
(608) 356-9441
Estate Planning Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Divorce Atto
Pemberton & Englund Law Offices
214 1st St
Baraboo, WI 53913
(608) 356-5700
Attorneys, Criminal Law Attorneys, Family Law Attorneys, Accident & Property Damage Attorneys, Gener
Varner Brent W
202 East St # 300
Baraboo, WI 53913
(608) 356-4515
Adoption Law Attorneys, Attorneys, Family Law Attorneys
Cross Richard W
221 3rd Ave
Baraboo, WI 53913
(608) 356-3981
General Practice Attorneys, Attorneys
Blessinger, Jeffrey - Cross Jenks Mercer & Maffei
221 3rd Ave
Baraboo, WI 53913
(608) 356-3981
Insurance Attorneys,  Legal Service Plans,  Attorneys,  Personal Injury Law Attorneys,  Litigation &
Boardman & Clark LLP
619 Oak St
Baraboo, WI 53913
(608) 356-3977
Attorneys
Hernandez, Michelle T - Krueger & Hernandez
123 2nd St
Baraboo, WI 53913
(608) 356-3961
Attorneys, Accident & Property Damage Attorneys, Legal Service Plans
Sacra Gregory W
322 1st Ave
Baraboo, WI 53913
(608) 356-3010
General Practice Attorneys, Attorneys
Jones Joann
513 2nd St
Baraboo, WI 53913
(608) 356-2934
Attorneys, General Practice Attorneys
Nichols Phillipp
524 Oak St
Baraboo, WI 53913
(608) 356-2501
Adoption Law Attorneys, Legal Service Plans, Attorneys
Viney & Viney
137 3rd Ave Baraboo
Baraboo, WI 53913
(608) 356-2159
Traffic Law Attorneys,  Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Real Estate Atto
Ash Street Law Office
314 Ash St
Baraboo, WI 53913
(608) 356-2116
Business Law Attorneys,  Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Corporation & Part
Martinez & Ruby LLP
144 4th Ave Ste 2
Baraboo, WI 53913
(608) 355-2000
Domestic Violence Attorneys, Attorneys
Greenhalgh Legal Services
202 Broadway St
Baraboo, WI 53913
(608) 355-0907
Attorneys,  Probate Law Attorneys,  Elder Law Attorneys,  Wills, Trusts & Estate Planning Attorneys
Merry Law Offices
144 4th Ave
Baraboo, WI 53913
(608) 355-0621
Attorneys, Bankruptcy Law Attorneys
Hale Linda L
620 8th Ave
Baraboo, WI 53913
(608) 356-0330
Family Law Attorneys, Legal Service Plans, Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US