Most commonly, successful and fast growing businesses these days are founded by two or more partners, compared to a sole proprietor. This is because having a partner by your side offers many clear benefits. Business partners can balance out each other’s weakness, share the workload and enhance the decision-making process. But, the real truth is that, despite many benefits, partnerships give rise to business disputes and disagreements that often end up legally. To prevent such situations to happen, it’s better to educate yourself about forms of partnerships in business. The more you have knowledge about each of them, easier it becomes to decide which one will work best for you. 1. General Partnerships It is the simplest form of partnership that doesn’t involve any filing of official documents. All tasks including management and liability are shared equally between both partners, and any of them can sign business contracts. A general partnership is defined as “The association of two or more individuals to carry on as co-owners for profits. If two or more people are working together to share management and financial risk, they are said to be in a partnership, by default. Partners in a general partnership are themselves responsible for debts and liabilities that arise in a business. 2. Limited Partnerships Limited partnerships are ideal for long term investments and tax havens. It works differently with two forms of partners, i.e. general and limited. General partners are those who manage a company and are personally responsible for debts. Whereas, limited partners are investors who contribute in the capital and share profits, but doesn’t manage the day to day business operations. As limited partnerships offer limited liability, they require a state filing agreement. They involve passing through taxation, which makes them ideal tax shelter for investors. Moreover, the initial losses that are often suffered from the formation of new business can be applied to personal income taxes. Recently, limited partnerships are becoming less popular and are replaced by Limited Liability Companies (LLCs). 3. Limited Liability Partnerships Limited Liability Partnerships (LLPs) are only formed between licensed professionals such as attorneys, dentists, veterans or accountants. LLPs are more similar to general partnerships, other than the fact that LLP partners are liable for their own actions, not of their partners. LLPs do require a written partnership agreement to establish limited liability among partners. Partnerships are the easy and inexpensive way to run a business. To prevent any form of risk to your personal liability, it’s wise to consider partnership structure like LLC or Corporation. If you are looking to achieve success in business started on the partnership basis, Business Partners can help. We are a global community of skilled entrepreneurs who are looking to assist you with top notch business partnerships based on your business needs and requirement.
0 Comments
Think about the times you wanted to start a new venture in a business or say, grow your existing business further but due to lack of resources or funds you could not get ahead and your dreams and initiatives were shattered. Well, we have solutions for those issues within our business hub platform BusinessPartners is at your service for providing you with the best resources, options and support! We connect you with a great variety of specific industry funding sources and services from small to large scale like:
Our hub allows you to get consultancy from Real Estate Brokers, Web Developers, Accountants, Bloggers Lawyers, Sales & Marketing Teams, and Mentors who can pave the path for your business opportunities by clearing up and helping you with any hurdles you face along the way. Talk about starting a new business from scratch, or growing your existing business; we enable direct connections with Entrepreneurs, Founders, Investors, Highly Skilled Individuals and Partners. Providing essential details backup support by professionals, you get unlimited access to Incredible New Streams of Sales Leads, Partnership Opportunities, a Wealth of Business Data & Information and Start-up Business Ventures where our users get active communication through Video and Grouping Capabilities in their profiles. Our growing network of online portal of business hub has successfully become A Zone for Connecting
And Established Corporations with Partners like
And Target Data for
|
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
September 2017
Categories
All
|