Los Angeles Partnership Establishment
A partnership is considered as the simplest form of a business structure in Los Angeles. Its nature tends to be more economical as it does not require a lot of resources to establish a partnership.
Basically, there are two types of partnership: a general partnership and a limited liability partnership. This article, however, focuses on general partnership, since it’s the more commonly-used business structure today in most part of Los Angeles.
All partners manage their business operations and its assets, and are likewise personally liable to all their business debts. This is called joint liability. However, partnership agreements may specifically state the kind of liability undertaking that each partner may take. By virtue of the concept, a partner must have at least another general partner to share the partnership liability.
Partners may also exercise joint authority, in which any individual partner may undergo a contractual agreement with another party. Consequently, such process binds the whole business partnership with the contract.
The aspect of taxation is different in the partnership structure than it is in a corporation. This is because the partnership is not treated as a separate tax entity, but rather treated as a “pass-through entity”, in which every partner will report their income individually and will file their tax returns personally.
Although establishing a partnership requires lesser paperwork less processes, it would be very wise to create such an agreement so that your business would be equipped in case there’s a need to resolve conflicts and misunderstandings between partners. Also, each state has its own rules and regulations governing partnership establishment.
Talking to a lawyer who specializes in this kind of corporate matter may help you design a partnership agreement that will fit your unique business situation. As such, we at Business Corporate Attorney have been helping in creating good and profitable partnerships for over 15 years.
Our law firm is still a top choice for many enterprising people in Los Angeles and the whole State of California. For you to experience our topnotch legal services, you may call us today at (888) 833-2528 or send us an e-mail at firstname.lastname@example.org for a free initial consultation.