Partnerships between individuals are a frequently used to conduct business. The Partnership Agreement must be specific to protect the business from internal disputes and to protect the individual partners from actions not authorized by the Partnership Agreement. A strong Partnership Agreement can prevent internal disputes. When properly formed, the administration of the business is determined at the beginning of the business, not while you are conducting business. In addition, specific limitations, contained within the Partnership Agreement, can protect partners from unexpected actions one partner or the other may take. You should remember that General Partnerships typically provide no protection from liability.
Frequently, Partnerships are an excellent way to conduct business, when there is a limited exposure to risk liability, and there is a desire to avoid taxation that may come from excise taxes, and taxation of dividends. We would be pleased to discuss with you a Partnership Agreement that is drafted specifically for your business, and for the needs that your business presents.