5 Reasons Why You Should Form a Partnership
- Easy Setup. Partnerships are formed by a private agreement between the partners, and don't need to register their existence with the state like corporations or limited liability companies. Partnerships don't require a written agreement, but it's a good idea to have one, nonetheless.
- Easy End. Just as easy as it is to form a partnership, it's simple to change or dissolve a partnership; all it takes is one partner giving notice of his express will to leave the partnership. (This may also be a detracting factor, depending on how you look at it.)
- Easy Taxes. While partners are taxed on profits and losses from the business, the partnership itself is not taxed; therefore partners must only report profits on their personal tax returns, rather than creating a business tax return.
- Easy Options. Limited partnerships, general partnerships, and even joint ventures, are some of your options when creating a partnership; each have their advantages and can provide your business with the flexibility it needs.
- Hard Choices. In a partnership, partners have a duty of loyalty to each other and must not enrich themselves at the expense of the partnership, forcing each partner to do what's in the partnership's best interests.
- Find Business & Commercial Lawyers Near You (FindLaw's Lawyer Directory)
- Business Organizations (FindLaw's Free Enterprise)
- Checklist: Starting a Partnership (FindLaw)
- The Small Business Partnership: General and Limited Partnerships (FindLaw)
You Don’t Have To Solve This on Your Own – Get a Lawyer’s Help
Meeting with a lawyer can help you understand your options and how to best protect your rights. Visit our attorney directory to find a lawyer near you who can help.
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