$1000 Flat Fee for Forming Your California Partnership Agreement
Partnerships and Partnership Agreements
Thinking of starting a business with another person? Don’t start a business on a handshake. With a written partnership agreement, you can write down all issues that may come up in a business and avoid misunderstandings with your business partner in the future.
A partnership is a business owned by two or more people. Each partner has a role in running the business. Each partner can borrow and spend money for the business. On the other hand, each partner is liable for the debts of the partnership. Partners share in the profits according to their proportionate share. This is usually determined from the initial investment each partner makes in the business, but partners can agree on a different method in the agreement. Partnerships, as an entity, do not pay taxes. Each partner pays taxes on the income he receives from the business. Typically, a partnership ends when one partner leaves the business or dies. However, with a written partnership agreement, partners can decide ahead of time that the business can continue to operate even if one of them leaves. You can also decide what happens to a partner’s share when he leaves; who can buy the shares, and how the departing partner’s shares will be valued.
Our attorneys can draft a partnership agreement that will protect you and your business investment.