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 Seeley, CA

Orientation to Business Partnerships in Seeley, CA


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 Seeley, CA
Shenkman Lee Ann
2425 Porter St # 3
Soquel, CA 95073
(831) 477-9932
Attorneys, Legal Service Plans
James Hawkins
39 Via Garona
San Clemente, CA 92673
(949) 218-9911
Attorneys, General Practice Attorneys
Adam Sorrells
60 Independence Cir
Chico, CA 95973
(530) 893-9900
Accident & Property Damage Attorneys, Personal Injury Law Attorneys, Attorneys
Hopper Geoffrey H & Associates
645 Brookside Ave
Redlands, CA 92373
(909) 798-9800
Employment Discrimination Attorneys, Attorneys, Labor & Employment Law Attorneys
Munoz Sandra
138 W Bonita Ave # 201
San Dimas, CA 91773
(909) 599-9711
General Practice Attorneys, Attorneys
Horspool & Parker A Professional Corp
127 E State St
Redlands, CA 92373
(909) 792-9660
Estate Planning Attorneys, Attorneys, Estate Planning, Probate, & Living Trusts, Elder Law Attorneys
Polon Burl S
2805 Porter St
Soquel, CA 95073
(831) 476-9496
Attorneys,  Family Law Attorneys,  Tax Attorneys,  Divorce Attorneys,  Civil Litigation & Trial Law
Suzanne Clark Morlock
795 Churchill Dr
Chico, CA 95973
(530) 332-9455
Attorneys, Legal Service Plans
Janet Stouder-Brandon Law Ofc
104 E Olive Ave # 103
Redlands, CA 92373
(909) 792-9282
Attorneys, Family Law Attorneys, General Practice Attorneys, Legal Service Plans
Simmons Raymond J
75 Declaration Dr
Chico, CA 95973
(530) 892-9255
Attorneys, Legal Service Plans
Divorce Attorney Cal
329 W State St
Redlands, CA 92373
(909) 792-9222
Attorneys
Lenita A. Skoretz
329 W State St
Redlands, CA 92373
(909) 792-9222
Attorneys, Family Law Attorneys
Deborah Malkin
2425 Porter St Suite 15
Soquel, CA 95073
(831) 462-9100
Attorneys,  Probate Law Attorneys,  Estate Planning, Probate, & Living Trusts,  Wills, Trusts & E
Roe Kelly K
30 Constitution Dr
Chico, CA 95973
(530) 895-8932
Adoption Law Attorneys, Family Law Attorneys, Attorneys
Ed Frey
4630 Soquel Dr
Soquel, CA 95073
(831) 479-8911
Attorneys, Legal Service Plans
Gubbels Christy L
2725 Esplanade
Chico, CA 95973
(530) 342-8888
Legal Service Plans,  General Practice Attorneys,  Attorneys,  Child Custody Attorneys,  Wills, Tru
Access Court Services
1385 Ridgewood Dr
Chico, CA 95973
(530) 899-8570
Paralegals, Legal Document Assistance, Business Coaches & Consultants
Labor Law Office, APC
1395 Ridgewood Drive, Ste. 300
Chico, CA 95973
(877) 219-8481
Discrimination & Civil Rights Law Attorneys, Labor & Employment Law Attorneys, Attorneys
Stifter Law Corp
1181 Puerta Del Sol # 100
San Clemente, CA 92673
(949) 388-8228
Attorneys,  General Practice Attorneys,  Legal Service Plans,  Criminal Law Attorneys,  Family Law A
Sheehan Bill E
1385 Ridgewood Dr
Chico, CA 95973
(530) 893-8225
Employee Benefits & Worker Compensation Attorneys
Keller, Matthew J - Deems & Keller Llp Law Ofcs
55 Independence Cir # 106
Chico, CA 95973
(530) 899-8040
Attorneys,  Labor & Employment Law Attorneys,  Personal Injury Law Attorneys,  General Practice Atto
Keller Matthew J
3120 Cohasset Rd
Chico, CA 95973
(530) 899-8040
Attorneys
Keller Law Office
3120 Cohasset Rd
Chico, CA 95973
(530) 899-8040
Attorneys,  Accident & Property Damage Attorneys,  Personal Injury Law Attorneys,  Employee Benefits
Macdonald Bryant C
300 E State St # 450
Redlands, CA 92373
(909) 793-7995
Attorneys,  Real Estate Attorneys,  Legal Service Plans,  Bankruptcy Law Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US