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 Toledo, OH

Orientation to Business Partnerships in Toledo, OH


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 OH Partnership Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Related Legal Services near Toledo, OH
Wynn Law Offices
5445 Southwyck Blvd Ste 205
Toledo, OH 43614
(419) 867-9966
General Practice Attorneys, Attorneys, Legal Service Plans
Polofka & VanBerkom LLC
500 Madison Ave Suite 605
Toledo, OH 43604
(866) 895-9949
Social Security & Disability Law Attorneys
Arend Paralegal Services
520 Madison Ave
Toledo, OH 43604
(419) 242-9927
Paralegals
Marks Law Office LLC
405 Madison Ave
Toledo, OH 43604
(419) 259-9912
Criminal Law Attorneys,  Divorce Attorneys,  DUI & DWI Attorneys,  Family Law Attorneys,  Attorneys
Sobecki Thomas A
405 Madison Ave
Toledo, OH 43604
(419) 242-9908
Discrimination & Civil Rights Law Attorneys, Labor & Employment Law Attorneys, Attorneys
Friedes David E
6545 W Central Ave
Toledo, OH 43617
(419) 842-9902
Social Security & Disability Law Attorneys,  Attorneys,  Divorce Attorneys,  Employee Benefits & Wor
Witcher Jenelda E
1900 Monroe St # 111
Toledo, OH 43604
(419) 243-9873
General Practice Attorneys, Attorneys
Zraik Law Office
2524 Secor Rd
Toledo, OH 43606
(419) 724-9812
General Practice Attorneys, Attorneys
Intagliata John C
4253 Monroe St
Toledo, OH 43606
(419) 472-9774
Attorneys, Legal Service Plans
J Michael Vassar Law Office
2730 Centennial Rd
Toledo, OH 43617
(419) 241-9773
General Practice Attorneys, Attorneys, Legal Service Plans
Dunn Jr Owen B
520 Madison Ave
Toledo, OH 43604
(419) 241-9661
Attorneys,  Business Bankruptcy Law Attorneys,  General Practice Attorneys,  Bankruptcy Law Attorney
Megan Burke LLC
405 N Huron St
Toledo, OH 43604
(419) 243-9650
Labor & Employment Law Attorneys,  Workers Compensation & Disability Insurance,  Social Security & D
Merillat Wesley D
6620 W Central Ave # 200
Toledo, OH 43617
(419) 841-9623
Attorneys
Zoll David
6620 W Central Ave # 200
Toledo, OH 43617
(419) 841-9623
General Practice Attorneys, Attorneys
Zoll, Kranz & Borgess
6620 W Central Ave Ste 200
Toledo, OH 43617
(419) 841-9623
Litigation & Tort Attorneys, Attorneys
Goranson Parker & Bella
405 Madison Ave # 2200
Toledo, OH 43604
(419) 244-9500
Attorneys, Legal Service Plans
Spychalski Deborah K
500 Madison Ave
Toledo, OH 43604
(419) 243-9424
Divorce Attorneys,  Attorneys,  Family Law Attorneys,  Bankruptcy Law Attorneys,  Business Bankruptc
Toledo Bar Association
311 N Superior St
Toledo, OH 43604
(419) 242-9363
Attorneys Referral & Information Service, Attorneys
Lorin Zaner
520 Madison Ave # 545
Toledo, OH 43604
(419) 834-9340
Attorneys Referral & Information Service, Attorneys, Arbitration Services
Bolotin Co LPA
3232 Executive Pkwy
Toledo, OH 43606
(419) 539-9200
Accident & Property Damage Attorneys,  Wrongful Death Attorneys,  Personal Injury Law Attorneys,  At
Lafferty Gallagher & Scott LLC
416 N Erie St
Toledo, OH 43604
(419) 324-9112
Attorneys,  Malpractice Law Attorneys,  Accident & Property Damage Attorneys,  General Practice Atto
McCarter C Thomas Law Office
4303 Mockingbird Ln
Toledo, OH 43623
(419) 255-9100
Accident & Property Damage Attorneys,  Attorneys,  General Practice Attorneys,  Legal Service Plans
Turin John C
6545 W Central Ave # 209
Toledo, OH 43617
(419) 841-9097
General Practice Attorneys, Criminal Law Attorneys, Attorneys
Johnson Robert G
3425 Executive Pkwy
Toledo, OH 43606
(419) 531-9095
Real Estate Attorneys,  Probate Law Attorneys,  Elder Law Attorneys,  Attorneys,  Wills, Trusts & E
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US