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 96740

Orientation to Business Partnerships in Zip Code 96740


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 HI Partnership Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Related Legal Services near Zip Code 96740
Kalman Victoria L
165 Hualalai Rd # 201
Kailua Kona, HI 96740
(808) 334-9888
Attorneys
Aloha Will & Trust
74-5565 Luhia St # Ca2
Kailua Kona, HI 96740
(808) 326-9876
Attorneys, Legal Service Plans
Fagundes Iii, Joseph Kona Law
77-6409 Leilani St
Kailua Kona, HI 96740
(808) 326-9831
Insurance Attorneys,  Attorneys,  Civil Litigation & Trial Law Attorneys,  Business Law Attorneys
Marx Robert P Law Offices
75-165 Hualalai Rd Ste 201
Kailua Kona, HI 96740
(808) 329-8587
Attorneys, General Practice Attorneys, Legal Service Plans
Gregg Jr Frederick W
76-211 Royal Poinciana Dr # A
Kailua Kona, HI 96740
(808) 329-7720
Attorneys, Legal Service Plans
Krueger Dennis
75-5722 Kuakini Hwy Ste 208
Kailua Kona, HI 96740
(808) 326-7654
Attorneys, Legal Service Plans
Maile Nakoa Shawn
75-167 Kalani St # 105
Kailua Kona, HI 96740
(808) 324-7575
Attorneys, Legal Service Plans
Brooks Tom Porter & Quitiquit
75-1000 Henry St Ste 208
Kailua Kona, HI 96740
(808) 326-7300
Attorneys, General Practice Attorneys
Quitiquit Bud
75-1000 Henry St # 208
Kailua Kona, HI 96740
(808) 326-7300
Attorneys
Gleed Darl C
75-5995 Kuakini Hwy Ste 432
Kailua Kona, HI 96740
(808) 329-6600
Attorneys,  Business Law Attorneys,  General Practice Attorneys,  Legal Service Plans,  Estate Plann
Start Up Hawaii
75-5995 Kuakini Hwy Ste 432
Kailua Kona, HI 96740
(808) 329-6600
Attorneys
Kwiat Jason R Atty
75-1000 Henry St Ste 209
Kailua Kona, HI 96740
(808) 329-6464
Attorneys, Legal Service Plans
Haitsuka, Edmund W - Carlsmith Ball
75-1000 Henry St # 209
Kailua Kona, HI 96740
(808) 329-6464
Attorneys, Legal Service Plans
Ian L Mattoch Law Offices
75-127 Lunapule Rd Ste 15B
Kailua Kona, HI 96740
(808) 769-6039
Attorneys,  Accident & Property Damage Attorneys,  General Practice Attorneys,  Legal Service Plans,
Higashi, Lynn H - Cades Schutte
75-170 Hualalai Rd Ste B303
Kailua Kona, HI 96740
(808) 329-5811
Attorneys, Criminal Law Attorneys, Accident & Property Damage Attorneys, Landlord & Tenant Attorneys
Cades Schutte
75-170 Hualalai Rd Ste B303
Kailua Kona, HI 96740
(808) 329-5811
Attorneys, Real Estate Attorneys, Legal Service Plans
Vitousek III Roy
75-170 Hualalai Rd Ste B303
Kailua Kona, HI 96740
(808) 329-5811
Attorneys, General Practice Attorneys
Tuhy Alan H
75-240 Nani Kailua Dr # 11
Kailua Kona, HI 96740
(808) 329-5678
Attorneys, General Practice Attorneys
Gallup Wally
75-5591 Palani Rd Ste 3007
Kailua Kona, HI 96740
(808) 329-5014
Attorneys, Legal Service Plans
Hawaii State Government Attorney General Department
75-5722 Kuakini Hwy Ste 215
Kailua Kona, HI 96740
(808) 327-4953
Attorneys, State Government
Jung Francis L
75-170 Hualalai Rd Ste D214
Kailua Kona, HI 96740
(808) 326-4852
Attorneys,  Corporation & Partnership Law Attorneys,  Civil Litigation & Trial Law Attorneys,  Busin
Jung & Vassar PC A Law Corp
75-170 Hualalai Rd Ste D214
Kailua Kona, HI 96740
(808) 326-4852
Attorneys, General Practice Attorneys, Legal Service Plans
Smith David E
78-6800 Alii Dr # 39
Kailua Kona, HI 96740
(808) 322-4766
Attorneys, Probate Law Attorneys
Bernstein David A
74-5547 Palani Rd
Kailua Kona, HI 96740
(808) 327-4646
Attorneys, General Practice Attorneys, Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US