3,009
edits
Difference between revisions of "Starting a Small Business"
Jump to navigation
Jump to search
Starting a Small Business (view source)
Revision as of 19:18, 28 November 2016
, 19:18, 28 November 2016→Partnership
Dial-A-Law (talk | contribs) |
Dial-A-Law (talk | contribs) |
||
| Line 57: | Line 57: | ||
But there are disadvantages to a partnership. As a partner, you’ll be personally responsible for all the debts of the partnership and, generally, you'll be bound by the acts of your partners, even if you don't agree with them. | But there are disadvantages to a partnership. As a partner, you’ll be personally responsible for all the debts of the partnership and, generally, you'll be bound by the acts of your partners, even if you don't agree with them. | ||
The biggest disadvantage of a partnership is joint liability. Any partner can be held wholly liable for the actions of another partner who acted within the scope of the partnership and incurred liability. A limited liability partnership (LLP) can limit your liability for another partner’s actions. You should discuss it with a lawyer. Script 266, called “Forming a Partnership” has more on this. | The biggest disadvantage of a partnership is joint liability. Any partner can be held wholly liable for the actions of another partner who acted within the scope of the partnership and incurred liability. A limited liability partnership (LLP) can limit your liability for another partner’s actions. You should discuss it with a lawyer. Script [[Forming a Partnership (Script 266)|266]], called “Forming a Partnership” has more on this. | ||
For tax purposes, each partner treats their share of the partnership's profits as personal income. | For tax purposes, each partner treats their share of the partnership's profits as personal income. | ||