A general
partnership: all the partners
share in the management, and all partners are
liable for the decisions made. In a general
partnership, a partner is held jointly and
severally liable for the acts of the other
partners.
You should have a partnership agreement
outlining the job description, capital
contribution, responsibilities and expectations
of each partner.
Limited partnership:
liability for the limited partner is limited.
One or more partners control and manage the
business, while others take no part in it.
You could register your partnership but
in most states you don't need to. Your
partnership agreement is enough. If
you register it, it will be a limited a
partnership partially a separate entity in
that it calculates its business income and
expenses on its own financial statements,
but the tax benefits or liabilities
flow through to each partner.
Ownership capital contribution
and participation Each individual's contribution may not
always be monetary. Contribution of time,
services, capital, equipment, expertise can
be considered capital contribution.
Dispute resolution Establish a process you are going to solve
problems before they occur rather than in
the midst of a dispute.
Distribution of profits
Who receives a share of the profits; how
much that share will be .
Do I Need an LLC operating
agreement?
Most states' LLC laws don't require an
operating agreement. However, an operating
agreement is necessary:
The courts respect your personal
liability more if they see organization behind
it .
It outlines how profits will be split
up, how business decisions will be made.
(NOTE:
(1) You need a Fictitious business Name
certificate to open a bank account and
Get insurance or other licenses. (2)
You are NOT required to Get a Business Fictitious Trade Name in KS, MS,
or TN . (3) In some states, you need a business
license before you can Get a Business Fictitious Trade Name ,
Business Fictitious Trade Name Certificate )Back to Top
NOTE: You are NOT
required to Get a sellers
permit in AK, MO, NH, or OR - in these states, use a federal Tax Id Number instead)
In all other states, you cannot legally start selling without this
permit. Also, this Permit is required
IN ADDITION to a
Business License or Permit (Corporations & LLCs
are required to have it as well).Back to Top
Note that sole owners may Get this business
id number as well and use it (instead of a
SS#) to open a business bank account as well as
use it to build business credit.
Back to Top
-Recommended to
reduce
taxes, Get
corporate
credit,
protect assets, and eliminate personal legal,
civil and financial liability.
Note that all corporations and LLCs must also
have a federal Tax Id Number AND a business
license as well as a Wholesaler's or Retailer's Buyer's License if selling
taxable items and a state ein if it has
employees.
