At The Law Offices of Rathi and Associates, we go the extra mile to get to know your business needs. We are knowledgeable in all aspects of writing and reviewing partnership contracts and can advise you on all aspects of partnership contract law. We will also work with you to decide the type of business entity you should choose based on your individual needs. After analyzing all of the facts, we often recommend that forming a business partnership may be the way to go.
Forming a partnership has advantages over other forms of business organization. The first benefit is that it permits any of the partners to make management decisions as pertain to the operation of the business. Once the duties of each partner are spelled out clearly in writing, all or any of the partners is free to use the unique resources and expertise that they bring to the business to achieve the company’s objectives. Partners usually work side-by-side performing different tasks in order to maximize the synergy of the organization. Salaries and bonuses are pre-determined in writing. All profits and losses flow through to the partners personally.
On the downside, the personal assets of each partner are not protected from creditors or legal claims should such claims arise. In order to protect your personal assets in a partnership arrangement, a limited liability partnership, LLP, should be formed. A limited liability partnership has the drawback of subordinating the management authority of each partner with the exception of the general partner who assumes all management responsibilities and makes all of the business decisions without the input of the limited partners. Limited partners participate only in the profits of the company, if any, and are not responsible for any of the losses to the extent they exceed their original capital investment.
Most partnerships are simple two or three person organizations. Partnerships generally appeal to business people who are not concerned with exposing their personal assets to legal liability. If you are seeking to organize a business and need to write, review or negotiate a partnership contract, please contact one of the professional partnership contract attorneys at The Law Offices of Rathi and Associates. Preparing or editing a partnership contract properly can provide the partners with a crystal clear understanding of each of their duties, responsibilities and free them up to pursue their business goals and objectives .