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Difference between revisions of "Forming a Partnership"
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{{Dial-A-Law | {{REVIEWEDPLS | reviewer = [http://severidelawgroup.com/oliver-b-hamilton/ Oliver Hamilton], Severide Law Group|date= March 2018}} {{Dial-A-Law TOC|expanded = business}} | ||
If you’re starting a business with someone else, a '''partnership''' is an option to consider. They can work well for real estate businesses, professionals and new businesses. Learn what’s involved. | If you’re starting a business with someone else, a '''partnership''' is an option to consider. They can work well for real estate businesses, professionals and new businesses. Learn what’s involved. | ||
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'''Limited partnerships''' are mainly for investors who want to invest in a partnership business, but who don’t want to run the business. If you’re an investor only, you could be a limited partner and you would be responsible only for the debts of the partnership up to the amount of money you invested or agreed to invest. This is true if you don’t help manage the partnership. But if you help manage the business, then you would have the same liability as if you were a partner in a general partnership. | '''Limited partnerships''' are mainly for investors who want to invest in a partnership business, but who don’t want to run the business. If you’re an investor only, you could be a limited partner and you would be responsible only for the debts of the partnership up to the amount of money you invested or agreed to invest. This is true if you don’t help manage the partnership. But if you help manage the business, then you would have the same liability as if you were a partner in a general partnership. | ||
A limited partnership must have at least one general partner who has the usual unlimited personal liability described earlier. Usually, the general partner is a company incorporated just for that purpose, so that its shareholders aren’t personally liable for the obligations of the company (see our information on [[ | A limited partnership must have at least one general partner who has the usual unlimited personal liability described earlier. Usually, the general partner is a company incorporated just for that purpose, so that its shareholders aren’t personally liable for the obligations of the company (see our information on [[Incorporating a Company (No. 267)|companies, no. 267]]). The general partner is the only partner who can manage the business, so the shareholders who have most of the voting shares of a general partner company also control the management of the partnership business. | ||
===A limited liability partnership can limit your liability=== | ===A limited liability partnership can limit your liability=== | ||
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