The definition of a partnership is "two people or more who have consented to take part in operating a business with the objective to profit". For a partnership to be properly formed, the following is required:
· The partnership has at least two people
· Every partner accepts any legal responsibility faced by the partnership
· Legal proof that the partnership was formed
Oral partnerships are possible; however, there is no legal proof of its formation should it face any legal action. Therefore, to clearly outline a partnership, use a Partnership Agreement.
General Partnership LiabilityThere is little liability protection of the owners when a partnership is formed and this is a major concern at the beginning. When setting up a general partnership, every partner is equally responsible for its duties and liabilities.
Every partner in the business is liable even if one partner engages in illegal activities while doing business on behalf of the partnership.
Financial LiabilityAll partners will be responsible for financial debts and other business commitments. A general partnership is not the formation of a new entity; therefore any debt incurred in the operation of the business will be shared by the partners.
Taxes do not flow through general partnerships. Every partnership is responsible for their personal as well as their share of taxes earned in the partnership. Your taxes will only be calculated on the profits earned in the partnership.
Forming an AgreementIt is recommended that a Partnership Agreement is used when forming a new partnership. This is a legal document proving the existence of the partnership and will govern how the partnership operates.
All Partnership Agreements are different; however, consider putting the following details in your agreement:
· Name and address of Partnership
· List of all partners
· Partnership's effective date and purpose
· Voting prerequisites for business decision making
· Percentage of costs per partner
· How profits are shared
· Financial, auditing and profit details
· Partner contributions and deadlines (if any)
· Partner withdrawal procedure
· Partnership dissolution procedure
The Partnership Agreement is the guideline for your business and must be followed by all partners. You don't usually have to file paperwork with the government when forming a partnership. Local businesses will have to be properly registered and will need to get any permits or licenses that you will need to operate legally in your state.
A fictitious business name might be required for you to operate your partnership.
Yoel “Mo” Molina, I am a lifelong resident of Miami, Fl. I am a graduate of Miami Senior High, Class of 1992, Georgia Institute of Technology, B.S. 1997 and University of Maine School of Law, J.D. 2001. I have been practicing law in Miami Since 2001. I am a former training prosecutor in the Miami-Dade State Attorney’s Office. I have experience in jury trials, appeals, and administrative hearings. I have appeared before judges across the State. My experience ranges from civil litigation matters, collection matters, foreclosure, business and corporate, contracts, real estate, leases and employment matters..
"Mr. Molina has always been there for us with timely, reliable and competent advice. He is an important and valuable part of our team." Corporate Client Eric Delgado, President of American International Export, Inc., a worldwide importer and exporter of brand name appliance parts.
"Yoel has been responsive and attentive to our company’s best interests and needs. He has been a valuable resource to our company. Any company that enlists his services would be in good hands-- including our own clients.” Corporate Client Gibran Flynn - Co-Owner and Founder of Eleva Solutions, Inc., the South Florida leader of outsourced HR, Staffing, Training, and Loss Prevention.
"My name is Anastasia Yecke Gude and I am the owner of Healing Hands Therapeutic Massage LLC. In the process of my company’s growth and expansion, I suddenly found myself a few weeks ago in need of a 1099 contractor agreement, and I needed it ASAP. As in, the very next day! I contacted the Law Office of Yoel Molina and his assistant put me in touch with Mo. I sent him what I had drafted up and he replied within a few hours with suggested revisions and clarifications, as well as a few insights I had not even considered. I was thoroughly impressed by the quality of work he provided, especially considering the time crunch I put him in (sorry, Mo!). I definitely recommend his services to anyone in need of a good contract attorney, and I will be calling him again for future work…hopefully in less of a rush next time!"