At the Piatchek Law Firm, our attorneys regularly assist clients with their questions and concerns regarding the formation and management of partnership business entities. A partnership is a combination of two or more individuals, called partners, who operate a business together.
This type of business entity provides a flexible way for two or more individuals to run a business jointly. Although no formal creation is necessary, individuals who wish to form a partnership should enter into a written agreement, called a Partnership Agreement or Articles of Partnership, which sets out all the terms of the relationship. Generally, the partners collectively make decisions concerning the partnership. However, the specifics of forming a business partnership vary from state to state.
The knowledgeable attorneys at the Piatchek Law Firm can help you select the best business entity for your business.
Why Form a Business Partnership?
There are many reasons why individuals might wish to join together to form a business partnership, such as the following:
- To work on a project that would normally be too risky for a single individual
- To combine to achieve a stronger position in the market
- To merge in compliance with specific regulations
- Because two heads are better than one!
Different Types of Partnerships
Several different types of partnership are available, including the following:
- Limited Partnership (LP)
- Limited Liability Partnership (LLP)
- Limited Liability Limited Partnership (LLLP)
Different partnerships come with different liabilities. A general partner is liable for the obligations of the limited partnership, while the limited partner has no personal liability for the same.
In addition, many people choose to form a limited liability company (LLC) instead of a partnership. It offers much of the same flexibility as the entities listed above, but is often simpler to understand and easier to form.
Our attorneys would be happy to meet and discuss any of these entities with you to help you decide between them. For more information or to schedule your complimentary consultation, please call us today at 417-882-5858.