By definition, a partnership is a business with more than just one person or one owner running it. A partnership refers to businesses with owners who have not filed legalities to become a limited liability company or LLC.

If you’re planning to enter a business venture with another person but you guys don’t want to make it a corporation, you need to know the basics of partnership.

There are two types of partnerships: general and limited. General partnerships are very common compared to limited partnerships.
Business based on partnership guarantees simple and inexpensive structure to manage it.
Although it is a ‘partnership’, there is personal liability for all owners. That means everyone is personally liable for business debts or business obligations. It also means if you and your partners fail to pay the creditor, you and your partner’s assets will be seized according to court rulings.
Taxes for business partnerships is what the IRS calls as pass through entity. Taxes will not be paid as partners; it will be paid individually.
When creating a partnership for your business, you and your partners are not required to go through the difficult and serious paper works. What you need to comply are the following: local registration, pay the minimum tax, IRS employer identification number, state issued seller license, and the zoning permit.
If you wish to end a partnership, remember that the partnership usually dissolves when it becomes tricky and one partner wants to leave the business. This is one of its greatest disadvantages.

That’s why before you enter a partnership and before you sign the partnership agreement, get a lawyer. Not only does a credible lawyer capable of protecting you and your assets from bad decisions, he or she will also help you straighten the creases.

So if you’re thinking of getting into a business partnership, hire a lawyer right now.

Related Posts
Dealing with your insurance company
If your house gets damaged by fire or other disasters, you can look to your insurance company for reimbursements. But your success of getting relief from your insurance company may ...
READ MORE
How do I know if I need a lawyer for a landlord tenant dispute?
Often times, landlord tenant disputes in which renters and residence owners will claim over issues such as maintenance of residence, increasing of the lease, disturbance, trespassing, rental and comfort issues. ...
READ MORE
Zoning laws – Avoid Zoning trouble
The primordial rule for business location is to never sign a lease for a business zone or space if you are not yet completely sure that you are legally allowed ...
READ MORE
Car Accidents and Law
Car injuries signify the majority of accidental injuries statements in the United States. According to the National Road Traffic Safety Management, a car incident occurs in the U.S. every ten seconds ...
READ MORE
Workers Compensation: Different illness and injuries covered
Just because you work in a company that has workers compensation doesn't mean you're entitled for coverage right away. Although it's very unfortunate that you met an accident or that ...
READ MORE
What works and what does not work in a traffic court?
Did you know that in a traffic court, when the officer who caught you fails to show up during the trial, you will win the case? This may happen if ...
READ MORE
Alimony
Alimony means the financial spousal support that the financially strong spouse pays to the other after the divorce. Alimony law has been made because in the earlier times women did not ...
READ MORE
Legal help while selling your home
Selling a home can bring up a lot of issues and could easily become a maze of processes. To make sure that you get your home’s worth, it would be ...
READ MORE
Expenses in a DUI case
DUI case or Intoxicated driving is the act of working or generating an automobile while under the impact of liquor or medication to the level that psychological and engine skills ...
READ MORE
Adoption Legal Services
Adopting a child can be a wonderful experience and fortunately, most adoptions work out well for everyone involved. Adoption is a legal process that ends the rights of the biological ...
READ MORE
Dealing with your insurance company
How do I know if I need a
Zoning laws – Avoid Zoning trouble
Car Accidents and Law
Workers Compensation: Different illness and injuries covered
What works and what does not work in
Alimony
Legal help while selling your home
Expenses in a DUI case
Adoption Legal Services