Important Aspects of a General Partnership
Forming a business can be exciting, and the Austin area is just the place to start up a new business enterprise. In particular, lots of people find that forming general partnerships is the best way to get their business started. This is largely due to the fact that a general partnership is easier to form than other types of businesses; however, there are still a number of complex business formation details and processes that need to be explored and considered first.
What a General Partnership Involves
There can be both benefits and drawbacks to forming a general partnership, so when you are thinking of forming a new business, it’s important to understand all important aspects. Some critical components of general partnerships include:
- Profits — profits are most generally distributed equally between business partners
- Assets — all assets owned by the company are equally shared by partners
- Liability — every partner in a general partnership shares equal responsibility for any liability, including debts, losses, or problematic actions of other partners
- Continuance — in the event of the death of a partner, sometimes continuance clauses can be established (prior to death) which allow a partnership or company to be continued
These aspects of a general partnership are important for any potential business owner to understand if he or she is thinking that a general partnership would be the best type of business for their budding company.
If you are thinking about forming a business and are considering a general partnership, or any other form of business, then a business attorney of Slater Pugh, Ltd. LLP, can help you through every aspect of your choice, giving you comfort that you’ve chosen the right business. Contact us today at to discuss your situation with an experienced attorney.