Partnerships?
If two or more people are going to own and operate your business,
you must choose between establishing a partnership, a corporation or
a limited liability company (LLC). This section looks at the general
partnership, which is the type of partnership that most small
businesses will be considering.
The best way to form a partnership is to draw up and sign a
partnership agreement. Legally, you can have a partnership without a
written agreement, in which case you'd be governed entirely by
either the Uniform Partnership Act or the Revised Uniform
Partnership Act.
Beyond a written agreement, the paperwork for setting up a
partnership is minimal about on a par with a sole proprietorship.
You may have to file a partnership certificate with a public office
to register your partnership name, and you may have to obtain a
business license or two. The income tax paperwork for a partnership
is marginally more complex than that for a sole proprietorship.
Put it in writing. If you go the partnership route, I
strongly recommend that the partners sign a written partnership
agreement, even though an oral partnership agreement is legal. The
human memory is far too fallible to rely on for the details of
important business decisions.
- Partnerships
- Corporations
- Sole Proprietorships
- Incorporation Basics
- Naming your Business
- Writing a Business Plan
- Limited
Liability Companies
- Complying with Zoning Laws
- Getting
Licenses and Permits
- Why Form a Nonprofit Corporation?
-
Choosing Between a Corporation and an LLC
- Leases and Rental Agreements: An Overview
