Partnership Disputes

The McMillan Law Firm understands the importance of partnerships in business. We also appreciate and understand the importance of the difficulties that might arise due to partnership disputes. It is of the utmost importance to be able to find solid and viable solutions that will contribute to a simple and viable solution so that these disputes may be solved quickly and efficiently.

Facts about Partnerships

There are two types of partnerships. One is referred to as a limited partnership the other is a general partnership.

Limited partnerships involve investors and one partner who is responsible for day to day operations in the context of the business. The other partners have no say in the daily operations and simply supply capital to support the business. These partners have no liability for any business related incidents and all liability is placed on the general partner.

General partnerships typically involve partners who are fully involved in the basic day to day operations of the business as well as the fiscal responsibilities concerned with the business. Both partners are personally liable for the company’s debts.

Each partner in the company can be sued and sometimes the only recourse for one partner is to sue the other partners in order to have them pay their portion of the debt.

The partnership isn’t responsible for the payment of taxes since each of the individual partners is responsible for recording their share of profits on their personal income taxes.

When starting a business there is no additional paperwork to be filed. The only paperwork that needs to be filed are the usual set of papers when opening a business.

One important aspect of a partnership is being able to establish a buy-sell agreement at the point of inception of the business. This way the business has an escape plan if the partnership doesn’t remain intact.

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