The form of business chosen for a business entity potentially affects every aspect of its operations. Our firm assists our clients in formation and business planning in deciding whether they want to operate as a closely held business, limited liability company, partnership, or corporation.
A partnership is a for-profit business association of two or more individuals, groups of individuals, companies, and corporations. Each partner shares directly in the organization’s profits and shares control of the business operation. There are laws that apply to partnerships, but in general, they are a flexible organizational business form.
For example, you can form a partnership without legal formalities – you just agree to own and conduct a business together. There are disadvantages to a partnership. Partners each have unlimited liability for the debts of the business and one partner can not sue another partner. Having an effective partnership agreement can greatly reduce the risk of disagreement between the partners as to the terms of the partnership.
When clients determine that a general or limited liability partnership is the best route, we provide assistance in the organizational documents and in any disputes that may arise between the partners.