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 Zip Code 94042

Orientation to Business Partnerships in Zip Code 94042


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 CA Partnership Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Related Legal Services near Zip Code 94042
United Legal Group
8607 Imperial Hwy Ste 100
Downey, CA 90242
(562) 862-9944
Bankruptcy Law Attorneys, Bankruptcy Services, Attorneys
Danelle Lloyd
12007 Paramount Blvd Suite #3
Downey, CA 90242
(562) 485-9897
Attorneys,  Legal Service Plans,  Business Bankruptcy Law Attorneys,  Bankruptcy Law Attorneys
Cilenti Steven
35 Court St Ste 206
Jackson, CA 95642
(209) 754-9732
Attorneys, Legal Service Plans
Grunbaum Daniel
5464 Grossmont Center Dr
La Mesa, CA 91942
(619) 469-9477
Attorneys, Legal Service Plans
Hansen's Guaranteed
9530 Imperial Hwy Ste D
Downey, CA 90242
(323) 904-9460
Attorneys Referral & Information Service
Jacoby & Meyers-Bankruptcy, LLP
7373 University Ave Suite 113
La Mesa, CA 91942
(619) 403-9400
Bankruptcy Law Attorneys
Hakop Keshishyan & Associates
7013 Foothill Blvd
Tujunga, CA 91042
(818) 273-9078
Accident & Property Damage Attorneys, Attorneys, Legal Service Plans
Master Liens
7844 la Mesa Blvd
La Mesa, CA 91942
(619) 460-9020
Collection Law Attorneys
Russell S Humphrey
1420 S Mills Ave # H
Lodi, CA 95242
(209) 625-8976
Attorneys
La County Juvenile Public Defender
7281 Quill Dr
Downey, CA 90242
(562) 940-8829
Juvenile Law Attorneys, Attorneys
Anderson & Kriger
8220 University Ave
La Mesa, CA 91942
(619) 589-8800
Attorneys, Construction Law Attorneys, General Practice Attorneys, Legal Service Plans
2nd Chair Services
6932 Colorado Ave
La Mesa, CA 91942
(619) 234-8664
Attorneys Support & Service Bureaus, Attorneys, General Practice Attorneys
2nd Chair Svc
5638 Lake Murray Blvd # 122
La Mesa, CA 91942
(619) 234-8664
Attorneys Support & Service Bureaus
Action Paralegal Svc
10025 Breidt Ave
Tujunga, CA 91042
(818) 352-8570
Attorneys,  Family Law Attorneys,  Estate Planning, Probate, & Living Trusts,  Paralegals,  Bankru
Todd Brian H Atty
7777 Alvarado Rd
La Mesa, CA 91942
(619) 464-8400
General Practice Attorneys, Attorneys
Accesso Legal
8607 Imperial Hwy
Downey, CA 90242
(562) 862-8295
Attorneys Referral & Information Service, Legal Service Plans, Attorneys
Manuel's Paralegal Svc
6064 Ruby Pl
Los Angeles, CA 90042
(323) 340-8069
Paralegals
LEE LAW GROUP
8515 Chloe Ave, Suite 229
La Mesa, CA 91942
(619) 806-8017
Attorneys,  Legal Service Plans,  Accident & Property Damage Attorneys,  Personal Injury Law Attorne
Hambleton Kaye E Attorney
8282 University Ave
La Mesa, CA 91942
(619) 463-7977
General Practice Attorneys, Attorneys, Legal Service Plans
Hambleton, & Perkins
8080 La Mesa Blvd
La Mesa, CA 91942
(619) 463-7977
Attorneys
Newton Thomas J
1812 W Kettleman Ln
Lodi, CA 95242
(209) 369-7678
Attorneys,  Accident & Property Damage Attorneys,  Child Custody Attorneys,  Family Law Attorneys,  
Weiss Daniel S
PO Box 984
San Francisco, CA 94142
(415) 476-7557
Bankruptcy Law Attorneys
Ogle Merzon & Kirschner
770 Morro Bay Blvd
Morro Bay, CA 93442
(805) 772-7353
Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Business Law Attorneys,  Real Estate Attorney
David Egan
8282 University Ave
La Mesa, CA 91942
(619) 461-7272
Accident & Property Damage Attorneys,  Automobile Accident Attorneys,  DUI & DWI Attorneys,  Persona
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US