The most important step in forming a partnership is the preparation of a well drafted agreement that clearly spells out rights, responsibilities & expectations of the parties. Our attorneys have extensive experience in the formation of new partnerships, including the preparation of partnership agreements.
Types of Partnerships
General Partnerships each of the partners is liable for the actions of any of the other partners. This type of partnership requires two or more individuals involved in a for-profit business.
Limited Partnerships must include at least one or more general partners who participate in management decisions and who have personal responsibility for the partnership debts. There will also be one or more limited partners who do not participate in management and whose liability for partnership debts is limited to the amount they have contributed to the business. This type of partnership is often formed when people need funding for a business, or an investment in a real estate development.
Limited Liability Partnership (LLP) is a partnership in which some or all partners have limited liabilities. It therefore exhibits elements of partnerships and corporations. In an LLP, one partner is not responsible or liable for another partner’s misconduct or negligence. LLPs are often used by businesses offering professional services such as architects, engineers and lawyers.
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