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 95416

Orientation to Business Partnerships in Zip Code 95416


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 95416
Grey Richard N
17801 Ventura Blvd
Encino, CA 91316
(818) 345-9780
Attorneys, Labor & Employment Law Attorneys, Corporation & Partnership Law Attorneys, Legal Service
Stromberg, Jeffrey T
423 E St
Davis, CA 95616
(530) 756-9677
Attorneys
Reynolds Law Corp.
424 2nd St
Davis, CA 95616
(530) 601-9504
Bankruptcy Law Attorneys,  Attorneys,  Bankruptcy Services,  Legal Service Plans
Shapiro Jerry E
2301 J St
Sacramento, CA 95816
(916) 447-9400
Attorneys, Legal Service Plans
Patten Faith & Sandford
635 W Foothill Blvd
Monrovia, CA 91016
(626) 359-9335
Estate Planning Attorneys,  Attorneys,  Legal Service Plans,  Criminal Law Attorneys,  Family Law At
Agencia Privada De Inmigracion
19059 Valley Blvd
Bloomington, CA 92316
(909) 421-8880
Immigration Law Attorneys, Attorneys
Chan Robert
1221 Vicente St
San Francisco, CA 94116
(415) 759-8877
General Practice Attorneys, Attorneys
DeAmicis Brian
2431 Capitol Ave
Sacramento, CA 95816
(916) 440-8833
Attorneys, Bankruptcy Services, Bankruptcy Law Attorneys
Calhoun Emilie
1109 Vicente St
San Francisco, CA 94116
(415) 759-8755
Attorneys, General Practice Attorneys
Stern & Goldberg
6345 Balboa Blvd Ste 200
Encino, CA 91316
(310) 278-8686
Attorneys, General Practice Attorneys, Tax Attorneys, Business Law Attorneys, Real Estate Attorneys,
Linda McLarnan-Dugan, Esq.
444 # 207 E. Huntington Dr.
Arcadia, CA 91016
(626) 296-8670
Attorneys,  Family Law Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Divorce Attorneys
Center For Family Formation Twalea Jordan
716 Alhambra Blvd
Sacramento, CA 95816
(916) 972-8512
Birth & Parenting-Centers, Education & Services,  Family Planning Information Centers,  Adoption Se
Moore & Moore
413 F St
Davis, CA 95616
(530) 758-8317
Attorneys, General Practice Attorneys, Probate Law Attorneys, Business Law Attorneys, Immigration La
Karr Michael P & Associates
930 Alhambra Blvd
Sacramento, CA 95816
(800) 444-8303
Immigration Law Attorneys
Gambatese, Roger L
510 4th St
Davis, CA 95616
(530) 756-8300
Attorneys, Probate Law Attorneys
Law Corp. Process Serving
105 S Mayflower Ave Unit G
Monrovia, CA 91016
(626) 710-8237
Paralegals, Legal Document Assistance
Gordon A. Glenn
4248 Adams Ave
San Diego, CA 92116
(619) 285-8191
Accident & Property Damage Attorneys, Personal Injury Law Attorneys, Attorneys
DeAmicis Brian
2200 L St
Sacramento, CA 95816
(916) 415-8185
Arbitration Services, Real Estate Attorneys, Arbitration & Mediation Attorneys, Bankruptcy Services,
Link Gary
725 30th St
Sacramento, CA 95816
(916) 447-8101
Eviction Service,  Landlord & Tenant Attorneys,  Civil Litigation & Trial Law Attorneys,  Attorneys,
Anton Peter Marantz
6345 Balboa Blvd
Encino, CA 91316
(818) 993-7994
Legal Service Plans,  Personal Injury Law Attorneys,  Landlord & Tenant Attorneys,  Attorneys,  Cont
Schultz David Law Offices
225 30th St
Sacramento, CA 95816
(916) 444-7552
General Practice Attorneys, Attorneys, Legal Service Plans
Buchanan J Scott
2609 Capitol Ave
Sacramento, CA 95816
(916) 441-7500
General Practice Attorneys, Attorneys, Legal Service Plans
Larscheid Buchanan & Zeff
2609 Capitol Ave
Sacramento, CA 95816
(916) 441-7500
Divorce Assistance,  Attorneys,  Accident & Property Damage Attorneys,  Malpractice Law Attorneys,  
Koorosh K. Shahrokh
6345 Balboa Boulevard, Ste 232
Encino, CA 91316
(818) 996-7301
Automobile Accident Attorneys,  Corporation & Partnership Law Attorneys,  Medical Malpractice Attorn
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US