Do you jointly own a business but have not formed a corporation or a limited liability company? Then you are likely involved in a Partnership!
While a Partnership does not offer any noteworthy advantage over a distinct legal entity such as a corporation or a limited liability company, owners must be careful! There are significant disadvantages to operating as a Partnership. The largest potential pitfall lies in that the owners and the partnership are usually viewed as one and the same. The owners of a Partnership are personally responsible for the taxes, lawsuits, and other liabilities of the business. Furthermore, have you ever thought about how much you trust your business partner? If one partner commits a bad act during the course of performing business services, all the partners are personally liable for the bad act.
We can help you design a business structure that is as simple to operate as a Partnership, but that also offers a liability shield to defend the owners’ personal assets against business related liabilities.
When starting and operating a business, it is important to build a solid legal foundation as a protection for you, your family, and your clients. Fresh Legal Perspective can provide legal counsel and practical insight when deciding the best way to set up your business. Call or e-mail us today to schedule an appointment and get to work on building a better foundation for your business.
This portion of the site is for informational purposes only. The content is not legal advice.