Orange Blossom, FL—Partnerships are one of a few types of business models a group of individuals can use to form their business. To form a partnership, there must be at least two people who are wanting to go into business together. The U.S. Small Business Administration (SBA) says partnerships are a good idea for individuals who are either wanting to test their business idea first before forming a more “formal business” or a group of professionals such as lawyers.

There are two types of partnerships that can be formed, both of which can be read about down below.

 

Limited Partnerships (LP)

 

With a limited partnership, there is usually one person who is designated as the “general partner,” and this person has “unlimited liability.” Because the general partner is fully exposed to any claims that are filed against the business, they have more control.

The other partners involved in the business usually have “limited liability,” resulting in them having “limited control.” The SBA says “profits are passed through to personal tax returns” for the partners with limited liability and the general partner is required to pay self-employment taxes.

Important: When forming a limited partnership, it is very important to set it up correctly to ensure personal assets are protected. For example, the general partner can be set up as an LLC or corporation rather than an individual agreeing to be listed as the general partner. This way, if the company is sued or runs into financial trouble, no personal assets are at risk of being seized.

 

Limited Liability Partnerships (LLP)

 

Unlike limited partnerships that assign one party as the general partner, limited liability partnerships are only comprised of partners with limited liability. The SBA says the partners in limited liability partnerships are “protected from debts” and aren’t “responsible for the actions of other partners.”

 

Setting Up a Partnership in Florida

 

In order to properly set up a partnership, there are a number of steps that must be taken. The Orange Blossom, FL business law attorneys at Legal Counsel P.A. can walk those looking to form the partnership through each of these steps. It is very important that partnerships are set up correctly as one simple error could result in the business being fined.

In addition to getting a business registered in the State of Florida, a business law lawyer will ensure the business is formed in a way so that no one’s personal assets such as their homes or vehicles are put at risk of being taken. Going into business alone or with multiple people is risky and the last thing anyone wants is to put their personal assets at risk of being seized should the business fail or run into financial issues.

Now, if an individual is wanting to schedule a time to speak with an Orange Blossom, FL business law attorney regarding setting up a partnership, they can call 407-395-2653.

 

Legal Counsel P.A. is located at:

 

189 S. Orange Avenue, Ste. 1800

Orlando, FL 32801

Phone: 407-395-2653

Website: www.legalcounselpa.com

Email: [email protected]

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