A general partnership has several pros and cons. Some advantages are: you don`t need to hire a lawyer. Check out your Local Bar-Association site to see if they have models that you can use as a starting point (z.B. published the New York State Bar here and here. SCORE publishes articles and models and occasionally organizes workshops for new business owners. Once you have a good design, you will find a solo practitioner (who can offer more reasonable prices than a lawyer in a large company) to see it as soon as it is ready. According to UpCounsel, each partner has a say in the entire company as part of a 50/50 partnership. Structuring a 50/50 partnership requires the approval, input and confidence of all trading partners. To avoid conflict and maintain trust between you and your partners, you should discuss all business objectives, the level of commitment of each partner and salaries before signing the agreement. You must also ensure that you register the business name of your partnership (or “Doing Business as”) with the appropriate public authorities. If one of the partners is only involved on a part-time basis or when a partner is interested in another company, an appropriate wording should be added to make it clear that the particular circumstances are acceptable to the partnership. This clause only indicates when the partnership comes into force. If it already exists, the effective date of the agreement is inserted according to the second alternative.
One of the advantages of a partnership is that partnership revenues are taxed only once. The partnership`s revenues are distributed to the various partners, who are then taxed on the partnership`s revenues. This contrasts with a capital company in which revenues are taxed at two levels: first as an organization, then at the shareholder level, where shareholders are taxed on the dividends they receive. Also note that the partnership property insurance obligation extends to real estate held in the name of an agent for the partnership. Any group of people who enter into a business partnership, whether it is a family, a friend or a chance knowledge of the Internet, should invest in a partnership agreement.