Forming a Business Partnership
Business Law Lawyer Rockville, MD
Forming a Business Partnership
It can be frustrating and time consuming to start your own business without the assistance of a business law lawyer in Rockville, MD. At the Law Office of Daniel J. Wright, a business law lawyer from our firm can help you prevent short term problems and long term costs.When you go into business with another person, you want to make sure that you have a sound agreement in the event a conflict or legal issue develops. Consulting a business law lawyer in Rockville MD beforehand can help you determine the type of business partnership you should create that best reflects your needs and goals. We can also draft the required legal agreements for your new company and ensure that your business gets started in the right direction. Call us at the Law Office of Daniel J. Wright to learn more about our legal services and how we can help you.
Types of Business Partnerships
Entering into a professional partnership is a significant commitment. Although it may be tempting to enter your business partnership on good faith that nothing will go wrong, you could ultimately put yourself at significant risk for problems to arise later down the road. A business law lawyer in Rockville MD from our firm can greatly minimize your risk factor.
General Business Partnership
A general partnership is a common choice because of the advantages it offers. In most cases, the partners equally share the responsibilities, profits, and losses of the business.
- There is less paperwork involved in initiating a general partnership than some other types of business structures.
- The tax requirements are simplified significantly, making it an attractive option for small businesses.
In a general partnership, each partner files their own tax return which specifies their profit and loss. Claiming this on their individual tax returns often results in paying lower taxes. However, as a business law lawyer in Rockville MD might explain, there are potential drawbacks with this form of partnership.
- A dispute between partners surrounding financial obligations, especially when one person contributes more than the other is a common problem partners may face.
- It is also common for confusing situations or disagreements to arise. Partnering with someone, while exciting, can also be risky without proper agreements in place.
- A business law lawyer in Rockville MD from the Law Office of Daniel J. Wright can work with you to negotiate an agreement that will work for you and your partner(s).
Limited Partnership
In a limited partnership, at least one person must continue to retain general partnership. This means they are financially obligated for the debts of the business. A limited partner is only financially responsible for their investment into the business. In a limited partnership, the general partner usually controls the business. Contact a business law lawyer in Rockville MD from the Law Office of Daniel J. Wright to learn more.
Limited Liability Partnership
An LLC can be an attractive option because it protects partners by preventing them from being responsible for the obligations of business partners.
Not all partnerships require that you equally share responsibilities; consult a business law lawyer in Rockville MD to draft an equitable agreement for you and your business partner.
Developing a Partnership Agreement
Without a formal agreement in place, you place your partnership and overall business at risk. A partnership agreement should include details surrounding investments, business management, how they will be paid and how they will handle partners leaving the business. Being clear about how the partnership will run and how you will share responsibilities will be key to a successful partnership. A business law lawyer in Rockville MD from the Law Office of Daniel J. Wright can play an essential role in creating a sound partnership agreement.
While starting a small business can feel stressful, entering into it with a business partner can feel less daunting. It can also be of great benefit to consult a business law lawyer Rockville MD professionals choose from the Law Office of Daniel J. Wright prior– call us today for a free consultation.
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