What is a Partnership?
We probably set them up every day and don’t even know but there is a big legal distinction between a partnership and a corporation to be aware of. A partnership is when two or more parties (e.g. individual and/or companies) enter into an agreement to work together. The agreement can be in writing or can be verbal. Once this occurs, you have created a partnership. Now, a partnership does not limit any liability. In fact, it could increase one’s liability by making someone liable for his/her own acts and the acts of the other partners! Therefore, be careful when deciding to partner with someone or some company.
Additionally, partnerships must file tax returns. Therefore, you will have to file a tax return for every partnership no matter what money was generated or if any activity was performed. Many should be familiar with limited liability companies (LLC’s). Believe it or not, these are partnerships NOT corporations. LLC’s are known as the partnership with corporate characteristics, namely limited liability to the owners. Therefore, unless able to and elect to treat them differently, LLC’s must also file as a partnership.
- Confirm compliance with the law.
- Determine if other information such as non-required articles should be included in your articles of organization.
- Can potentially avoid liability to the owners by having it drafted correctly.
How long does it take to draft a custom Partnership Agreement?
Approximately 1-2 business days*
*Depending on Specifications
Why our firm to make your custom Partnership Agreements?
If you would like to set up a partnership, or are unsure if one was set up, contact SG Law Group. We can help guide you with your Partnership.
Hire an affordable, professional Attorney to properly draft your Partnership documents Today!