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Partnerships | Partnership-Risks & Liabilities | Forming a Partnership

Drason Law Firm help clients with Partnership Agreements. We assess your Partnership and inform you by answering all your questions and concerns, by drafting proper agreements, educate you on various risk factors in your Partnership, make recommendations and provide alternative solutions; so that you can do what you do best-manage and see your Partnership grow.  

If you have a Partnership or are thinking of forming one, Call us today! 1-800-929-5140
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WHAT ARE PARTNERSHIPS?

Partnerships are the most-simplest form of structure under which two or more persons conduct business. 

WHAT ARE THE FORMAL REQUIREMENTS FOR A PARTNERSHIP?

There are no formal requirements to form a partnership.  A general partnership must have two or more persons engage in a business for profit.  

WHAT IS MY LIABILITY AS A PARTNER?

All Partners in a Partnership are joint and severally liability for all Partnerships debts and liabilities. What does this mean? It means that if you will be responsible for your partner’s actions and vice-versa. Any Partnership debt such as loans, line of credit is both of your responsibility. Any lawsuits bought against the partnership are also both your responsibility.

are all partnerships the same?

Structurally speaking all Partnerships are similar. They are formed the same way. However, some have or require more formalities than others. The most notable difference between various Partnerships are the liabilities that go along with each Partnership. Partnerships can be formed for any reason, as long as it is a venture between two or more people for Profit. It is important to discuss your Partnership and its purpose with your Lawyer. This is a very important step-understanding the risks of your Partnership. 

what are my partners responsibilities in a partnership?

Each partner in a partnership owes all other partners a (A) Duty of Loyalty, (B) Duty of Equal Profit Sharing, (C) Equal control in the partnership, (D) No Salary (unless the Partners agree otherwise). 

what are risks in partnerships?

The greatest risk of a partnership is unlimited liability of the Partners involved-Personal liability to creditors, lawsuits and debts. 

HOW DO I LIMIT MY LIABILITY IN A PARTNERSHIP?

You can limit your Liability by becoming a Limited Partner. Limited Partners are usually passive investors in the business and do not engage in the day to day activities of the business. Limited Partnerships are complex and have formal requirements. They also have to be registered with the state. You can also choose to Incorporate your business. Incorporation provide you with many additional protections that Partnership cannot. 

WHAT ARE DIFFERENT PARTNERSHIP AGREEMENTS?

  • A GENERAL PARTNERSHIP AGREEMENT 
  • LIMITED PARTNERSHIP AGREEMENT
  • PARTNERSHIP FORMATION AGREEMENT
  • PARTNERSHIP OPERATING AGREEMENT 

You should speak with us if you have any questions or wish to get a formal agreement for your Partnership venture. 

HOW CAN A LAWYER HELP IN PARTNERSHIP?

Lawyers can help you: 
  • Access your risk in the Partnership 
  • Help structure the Partnership 
  • Recommend alternative to Partnership arrangement if necessary
  • Answer your questions 
  • Prepare Contracts 
  • File necessary documents with the State

Drason Law Firm provides clients with personal attention. We strive to provide all services at very competitive rates. We are located in San Jose, California. 

Have Questions? Click Here to contact us today
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DRASON LAW FIRM
info@drasonlaw.com

Phone: 1 (800) 929-5140


DRASON LAW GROUP. COPYRIGHT 2022. 

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Privacy Policy
  • Drason Law Firm
  • Practice Areas
    • Individual Legal Services
    • Business/Corporate Law >
      • How can we help your Company?
      • Benefits of Incorporating
      • Franchise Purchases | Agreements
      • Incorporating | S-Corp | C-Corp | LLC >
        • Bylaws
        • LLC Operating Agreement
        • Independent Contractor | Incorporation Benefits
      • Social Purpose Corporation (Previously: Flexible Purpose Corporation)
      • Converting Corporation to LLC | Converting LLC to Corporation
      • Professional Corporations
      • Negotiations | Business & Commercial
      • Partnerships | Partnership Agreements
      • Business Dissolution
      • Dispute Resolution | Disagreement
      • Buy-Sell Agreements
    • Small Businesses >
      • Small Business Contract Lawyers
    • Contracts >
      • Software Agreements
      • SaaS Agreements (Software as a Service)
      • Software Agreement Disputes
      • Contract Attorneys
      • Contract Breach & Disputes
      • Contract Litigation
      • Contract Review Service
      • Small Business Contract Lawyers
      • Negotiations | Business & Commercial
      • Commercial Lease
      • Buy-Sell Agreements
      • Business Purchases and Sale Agreements
    • Litigation | Lawsuits >
      • Business Litigation
      • Fraud Litigation
      • Contract Litigation
      • Civil Litigation
      • Personal Injury | Auto-Accidents >
        • Auto Accident Injury
        • Slip & Fall Injury
        • Construction Injury
        • Pedestrian Injury
    • Arbitration >
      • Arbitration Lawyer | Arbitration Process
    • Startups >
      • Why should StartUps Hire their own Lawyers
      • Founder | Co-Founders Agreement
      • Shareholder Agreement
      • C-Corp | Venture Capital
      • Startup Stocks | Authorized Shares
      • Convertible Equity
    • Tax Law >
      • 1031 Exchange Help
      • Offer in Compromise (IRS Tax Liabilty Settlement)
      • Removing a Bank Levy by the IRS
      • Hotel/Motel Tax Lawyer
      • Sales Tax Appeal | California Sales Tax Appeal
  • Contact Us
    • Phone Consultation
    • Book an Appointment
  • Blog
    • California Codes