The type of business that I want to start is partnership. A partnership is an association of two or more people who carry on as co-owners of a business. Our kind of partnership is general partnerships which participate actively in the operation of the business, sharing all the responsibility, profits, and liabilities.
Characteristics
- Easy to form
Partnerships, as proprietorships, are not difficult to form. As one of the owners, you share in the profits and the right and freedom to manage. There are few legal restrictions, and the organization is easy to dissolve.
- Assets of the business
The assets of the business are owned on behalf of the other partners, and they are each personally liable, jointly and severally, for business debts, taxes or tortious liability. For example, if a partnership defaults on a payment to a creditor, the partners' personal assets are subject to attachment and liquidation to pay the creditor.
- Profits
Profits are shared equally amongst the partners. However, a partnership agreement will almost invariably expressly provide for the manner in which profits and losses are to be shared.
-Taxed as a Personal Tax
As one of the owners, you will be taxed, as in proprietorship. Each partner is liable for the debts of the organizations.
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Type of partnership
• General Partnership
The general partnership that we decide to choose is one variation of the partnership vehicle wherein all partners participate actively in operating the business, sharing all the responsibilities involved in running the firm.
Partnership Agreement
A partnership agreement is a written document that sets forth all of the terms under which the partnership is to operate with writing down the terms of a partnership may eliminate many future disputes since the process of documenting the partnership raises many questions that you might not have considered. It is useful to spell out every detail in order to avoid future...