What is a Partnership
A partnership is an association of two or more persons
for the purpose of conducting business. Although the
partnership can declare bankruptcy and limit some
liability, it is not normally regarded as a legal entity
like a corporation.
There are two types of partnerships -- the general
partnership and the limited partnership.
In a general partnership, all partners share in both
the profits and responsibilities of the business. Unless
otherwise spelled out in the partnership agreement, each
partner has one vote, no matter how much he has
contributed to the business. A general partnership is the
most popular partnership.
A limited partnership is an arrangement where a person
or company invests in an unincorporated business and still
gains limited liability protection. However, they do not
possess any management powers. (The legal documents in
this kit have been designed for a general partnership
A partnership begins with an agreement, which can be
spoken, written or simply a matter of understanding. Good
friends who decide to form a partnership may not feel it
necessary to reduce their arrangements to writing.
However, experience proves that it makes sense to draw up
an agreement. Any point that is covered in the partnership
agreement is subject to state law.
If you decide that a Partnership Agreement is what your
business requires, this kit will make the process simple,
quick and easy.
Complete Kit: Forms & instructions with
optional software disk