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 New Tazewell, TN

Orientation to Business Partnerships in New Tazewell, TN


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 TN Partnership Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Related Legal Services near New Tazewell, TN
Washburn & Hutcherson Law Firm
117 N Poplar St
Dresden, TN 38225
(731) 364-9715
Attorneys
Carla Marie Christian RNJD
119 W Market St
Dyersburg, TN 38024
(731) 285-9011
Attorneys, Legal Service Plans
Agee, Charles M Jr
115 S Mill Ave
Dyersburg, TN 38024
(731) 285-8747
Attorneys,  Personal Injury Law Attorneys,  Criminal Law Attorneys,  Medical Malpractice Attorneys,
Jackson & Hurst Law Firm
7894 Winchester Rd
Memphis, TN 38125
(901) 417-8656
Attorneys, General Practice Attorneys, Legal Service Plans, Immigration & Naturalization Consultants
Randolph Jason S
131 W Meeting St
Dandridge, TN 37725
(865) 397-8327
Attorneys,  Criminal Law Attorneys,  Family Law Attorneys,  Wills, Trusts & Estate Planning Attorne
Ketchum, Gerald W
312 Masonic St
Dyersburg, TN 38024
(731) 285-8165
Bankruptcy Services,  Attorneys,  Bankruptcy Law Attorneys,  Debt Adjusters,  Financial Services
Deere Barbara A
110 N Main Ave
Dyersburg, TN 38024
(731) 285-7889
Attorneys,  Criminal Law Attorneys,  Social Security & Disability Law Attorneys,  Accident & Propert
Palmer Law Firm
116 W Court St
Dyersburg, TN 38024
(731) 285-7382
Attorneys,  Title Companies,  General Practice Attorneys,  Legal Service Plans
Alford Law Firm
173 N Church Ave
Dyersburg, TN 38024
(731) 287-7020
Attorneys, General Practice Attorneys, Legal Service Plans
Prather, Paul E
3725 Champion Hills Dr
Memphis, TN 38125
(901) 795-6695
General Practice Attorneys, Attorneys
Kiesewetter, Jay W
3725 Champion Hills Dr
Memphis, TN 38125
(901) 795-6695
General Practice Attorneys, Attorneys
Kaplan, Jonathan E
3725 Champion Hills Dr
Memphis, TN 38125
(901) 795-6695
Labor & Employment Law Attorneys, Attorneys, Litigation & Tort Attorneys
Wise, J Edward
3725 Champion Hills Dr
Memphis, TN 38125
(901) 795-6695
General Practice Attorneys, Attorneys
Webb, Vanedda Prince
121 N Market St
Dyersburg, TN 38024
(731) 285-6677
Attorneys,  Adoption Services,  Adoption Law Attorneys,  Family Law Attorneys,  Divorce Attorneys
District Attorney General
121 W Main St
Dresden, TN 38225
(731) 364-5513
Attorneys, State Government, County & Parish Government
Pemberton Beau E
109 N Poplar St
Dresden, TN 38225
(731) 364-5411
General Practice Attorneys, Attorneys
Bradberry James H
109 N Poplar St
Dresden, TN 38225
(731) 364-5411
General Practice Attorneys, Attorneys, Legal Service Plans
Nichols Gary Atty
202 S Main Ave
Dyersburg, TN 38024
(731) 286-5323
General Practice Attorneys, Attorneys
Bell James
1540 Persimmon Orchard Dr
Dandridge, TN 37725
(865) 919-5110
Attorneys, Legal Service Plans
Weakley Thomas
120 W Court St
Dyersburg, TN 38024
(731) 285-4540
General Practice Attorneys, Attorneys, Legal Service Plans
Rainwater Drinnon & Churchwell PLLC
706 Justice Center Dr
Dandridge, TN 37725
(865) 397-3939
Attorneys
Scofield, Stephen D
217 N King Ave
Dyersburg, TN 38024
(731) 285-3810
Attorneys,  Personal Injury Law Attorneys,  Wills, Trusts & Estate Planning Attorneys,  Divorce Att
Repass W Keith
1230 Gay St
Dandridge, TN 37725
(865) 397-3555
General Practice Attorneys, Attorneys
Strawn & Edwards Pllc
314 N Church Ave
Dyersburg, TN 38024
(731) 285-3375
Attorneys, Bankruptcy Law Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US