Dissolving a Partnership
If you are operating in a partnership, then you have a right to dissolve it under the Uniform Partnership Act, which has been adopted in or influenced by the partnership law of almost every state.
→ Read MorePartnerships
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Each Partner’s Legal Responsibilities in a Partnership
When groups of individuals join together in business partnerships, each member of the partnership becomes bound by basic legal duties. A business partner’s legal responsibilities to the other members of the partnership can also depend on the type of partnership in question. Limited Liability Partnerships (LLP) and Limited Partnerships (LP) offer different legal responsibilities to individual partners then general business partnerships do.
→ Read MoreSteps Involved in Setting Up a Partnership
Setting up a business partnership is generally a straightforward process. Two types of business partnership exist: the general partnership and the limited liability partnership. Both types of partnership are relatively easy to set up and follow many of the same basic steps, but creating a limited liability partnership often demands more attention to organizational details.
→ Read MoreDo You Need a Partnership Agreement?
When setting up either a general partnership or a limited liability partnership, drafting a partnership agreement is a must. While it is legally possible to create a business partnership without a partnership agreement, doing so is risky and can lead to problems between partners down the road. A well-drafted partnership agreement should address in detail all elements of the business, including the features of the business relationship between the partners. While a range of partnership agreement templates can be found online by a quick search, a business attorney can also be a useful resource in helping to draft this agreement.
→ Read MoreWhat is a Limited Partnership?
A limited partnership (LP) is an association of one or more general partners together with one or more limited partners to conduct business for profit as co-owners. The most important feature of a limited partnership is the limited partner enjoys limited liability as long as s/he does not participate in the control of the partnership business.
→ Read MoreYour Personal Liability in a Partnership
Your personal liability in a business partnership, as well as your partnership liability, can vary. Partnership liability can depend on the type of partnership you enter into, as well as your position in the partnership. These include Limited Partnerships (LP), Limited Liability Partnerships (LLP), and general partnerships. Each one of these partnerships can provide business owners with a different level of liability protection.
→ Read MoreBenefits of a General Partnership
A general partnership can provide a business with structure and control in addition to other benefits. In most general partnerships, profits are shared equally among the partners. Typically, partners will sign a contract at the commencement of the general partnership which outlines how profits and losses will be divided. As asset protection vehicles, general partnerships are not an ideal choice, since they do not offer limited or severable liability. Each partner is responsible for the actions and liabilities of every one of the other partners. A general partnership is intended to distribute risk as well as managerial flexibility.
→ Read MoreWhat are Some Common Types of Partnerships?
The most common types of partnerships include a partnership, limited partnership, limited liability partnership, and limited liability company. The type of business that you operate determines issues such as the extent of personal liability that you have from the business and how the business is taxed, among other things.
→ Read MoreWhat is a General Partnership?
In business, when you hear the word “partnership,” it normally refers to a general partnership. In a general partnership, there are two or more partners. Each is liable for any debts or judgments taken on by the business. There is no limited liability, which means all the partners’ assets can be taken in a lawsuit or be targeted to settle debts should the partnership become insolvent. Any partner can be sued for the full amount of business debts.
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