Top Legal Considerations When Forming a Partnership in New Port Richey

A partnership is a popular type of business structure, and it offers numerous benefits. If you’re thinking about starting a partnership in New Port Richey, you should consider the various legal implications of this business type. With guidance from a business entity lawyer, you can address these concerns with efficiency and confidence.

Is a Partnership Really the Right Choice? 

The first question you need to ask is whether a partnership is truly the most appropriate business structure for your new entity. All effective partnerships are built on trust. Partners collaborate on shared goals, share financial burdens, and shoulder many of the same responsibilities. Partnerships also offer considerable flexibility, often giving you more options compared to a corporation or LLC.

Partnerships are often formed by groups of professionals with similar expertise. Common examples include law firms, accounting firms, consultants, recruiting agencies, and so on.

Choose the Right Type of Partnership 

If you’re sure you want to form a partnership, you’ll also need to choose a specific type of partnership. For a more flexible and basic option, choose a general partnership. If you plan to have “junior” partners with less control over the business, consider a limited partnership. A limited liability partnership is a popular choice for those who don’t want to become responsible for each other’s debts and lawsuits, and it is a common structure for law firms. There is also a “limited liability limited partnership,” which includes elements of both limited partnerships and limited liability partnerships.

How to Create an Effective Partnership Agreement

 The foundation for every successful partnership is the “partnership agreement.” This contract lays out each partner’s rights and responsibilities. It also helps to govern disputes between partners if they ever arise in the future. Although lawyers can help with many other aspects of partnership formation, they often play a central role in the drafting of partnership agreements. With help from a lawyer, you can make sure this agreement will stand up in court.

Partnership agreements will detail the guiding ethos of the new company, how much startup capital each partner will contribute, and who will make the major decisions. The agreement will also describe how profits should be divided between the partners.

In addition, the agreement will describe how disputes should be handled in the future, and what happens if one partner wants to leave the company. The agreement will also dictate the circumstances in which a partner can sell their ownership of the company. Finally, the agreement will describe what will happen if a partner dies.

Can a Business Entity Lawyer in New Port Richey Help With Partnerships? 

If you’re ready to start a partnership in New Port Richey, an experienced business entity lawyer may be able to help. One of the key steps in this process is the creation of an effective partnership agreement. This contract will serve as the foundation for your new business, and it’s important to get it right the first time around. Contact the Pasco County business lawyers at Athanaselos & Associates, P.A. today to get started.

Sources:

 leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0620/0620.html

americanexpress.com/en-us/business/trends-and-insights/articles/what-are-the-advantages-and-disadvantages-of-a-partnership/