A business partnership is an arrangement where one or more persons join together in order to conduct business activities. A partnership may be formed for a new business that does not yet exist and will be run by only a few persons (i.e., the "partners"). Or, a partnership can be created between two existing businesses that wish to accomplish a specific goal (such as when two brand name companies work together to market a single product).
What Is a General Partnership?
A general partnership is the most basic type of partnership. In a general partnership, each partner will be generally liable for the debts and losses that may be incurred by the partnership. In exchange, they will also be able to exercise a certain amount of control when it comes to the management of the business, as well as profits and other benefits.
In contrast, a "limited partnership" involves less risk for the individual partners. Rather than be liable for the risks of the entire partnership, limited partners are usually only liable for that portion of the business which originated from them, or which they contributed in the beginning.
How Are Business Partnerships Terminated?
Terminating or dissolving a partnership usually occurs if any of the partners become incapacitated or if they become deceased. This can sometimes limit the potential longevity of a partnership, since the business arrangement may terminate unexpectedly if something happens to just one partner.
Should I Hire a Lawyer for Help with Business Partnership Issues?
Business partnerships can be helpful for accomplishing various business objectives. However, they can sometimes involve many different legal requirements and forms. You may need to hire a business lawyer for assistance if you have any questions or legal issues regarding a business partnership. Also, an attorney can provide you with representation in a court of law if you need to be involved in a business partnership lawsuit.