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 West Orange, NJ

Orientation to Business Partnerships in West Orange, NJ


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 NJ Partnership Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Related Legal Services near West Orange, NJ
Critchley M
354 Main St
West Orange, NJ 07052
(973) 731-9831
Attorneys, Criminal Law Attorneys, Civil Litigation & Trial Law Attorneys, Business Law Attorneys, L
Helbig Sandra D
16 Highland Pl
West Orange, NJ 07052
(973) 731-9828
Attorneys
Greenberg Steven M
100 Executive Dr # 390
West Orange, NJ 07052
(973) 731-9800
Attorneys, Legal Service Plans
Desiderio Roger J
80 Main St # 260
West Orange, NJ 07052
(973) 736-9800
Attorneys
Millman Robert N
111 Northfield Ave # 201
West Orange, NJ 07052
(973) 669-9776
Attorneys, Legal Service Plans
Rubino Joseph R CPA
500 Prospect Ave # 2
West Orange, NJ 07052
(973) 669-9600
Accountants-Certified Public, Attorneys, General Practice Attorneys, Accounting Services
Mc Elnea Brenda
200 Executive Dr # 100
West Orange, NJ 07052
(973) 239-9595
Attorneys, Elder Law Attorneys, Wills, Trusts & Estate Planning Attorneys, Legal Service Plans, Esta
Press Michael R
80 Main St # 430
West Orange, NJ 07052
(973) 324-9550
General Practice Attorneys, Attorneys
Supino Anthony
20 Northfield Ave
West Orange, NJ 07052
(212) 751-9497
General Practice Attorneys, Attorneys
Stanziale Jr Benjamin A
29 Northfield Ave # 2
West Orange, NJ 07052
(973) 731-9393
Attorneys, Legal Service Plans
Watson Joanne
59 Main St
West Orange, NJ 07052
(862) 252-9282
General Practice Attorneys, Attorneys
Marucci Anthony
49 Mount Pleasant Ave
West Orange, NJ 07052
(973) 243-9090
Attorneys, Legal Service Plans
Thompson Cindy L
300 Executive Dr # 240
West Orange, NJ 07052
(973) 324-9002
General Practice Attorneys, Insurance, Attorneys
De Martinis Adolfo S
111 Northfield Ave # 304
West Orange, NJ 07052
(973) 731-8700
General Practice Attorneys, Attorneys, Legal Service Plans
Barone Susan J ESQ
7 Hutton Ave
West Orange, NJ 07052
(973) 325-8681
Attorneys, Legal Service Plans
Trenk Di Pasquale Webster Della Fera & Sodono PC
347 Mount Pleasant Ave Ste 300
West Orange, NJ 07052
(973) 243-8600
General Practice Attorneys, Attorneys
Berman Barry D
111 Northfield Ave # 208A
West Orange, NJ 07052
(973) 669-8545
Attorneys, Legal Service Plans
Padovano Margaret E
107 Main St
West Orange, NJ 07052
(973) 731-8405
General Practice Attorneys, Attorneys
Dooley Francis J
350 Main St
West Orange, NJ 07052
(973) 731-8400
General Practice Attorneys, Attorneys, Legal Service Plans
Brennan Jos P Jr
13 Harvard Ter
West Orange, NJ 07052
(973) 731-8194
Attorneys, Legal Service Plans
Berger Mitchell
24 Park Ave # 2
West Orange, NJ 07052
(973) 325-8150
General Practice Attorneys, Attorneys
Plofsky Steven J
347 Mount Pleasant Ave # 203
West Orange, NJ 07052
(973) 669-8111
General Practice Attorneys, Attorneys, Legal Service Plans
Berkowitz Lichtstein Kuritsky Giasullo & Gross
443 Northfield Ave Fl 1
West Orange, NJ 07052
(973) 325-7800
General Practice Attorneys, Attorneys, Legal Service Plans
Mautone & Horan
500 Prospect Ave
West Orange, NJ 07052
(973) 736-7755
General Practice Attorneys, Attorneys, Legal Service Plans
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US