Small Business Entrepreneurship

The partnership book: how to write a partnership agreement by Denis Clifford, Ralph E. Warner

By Denis Clifford, Ralph E. Warner

Many folks dream of going into company with acquaintances. This ebook indicates how you can flip that dream right into a sound partnership contract. It indicates step-by-step easy methods to write a partnership contract and deal with key issues--from each one partner's preliminary contributions to learn sharing and buy-outs. contains kinds on disk and as tear-outs.

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Partnerships In this section, we give you a quick look at the nature of partnerships, so that you can compare them to corporations and sole proprietorships. Then, later in this chapter, we'll explore the partnership legal form in more depth. Here are five key points about partnerships: 1. A partnership is a business owned by two or more people. 2. Each partner can perform all acts that are necessary to operate the business, including hiring employees and spending or borrowing money. Each partner is personally liable for all debts incurred by the business.

Both Laurie and Pete know that many small food companies start by contracting out actual manufacture, because that is less costly than making the product themselves. Both wonder about doing this. Is it possible to really assure top quality if you don't handle production yourself? Pete will look into distribution and marketing costs, focusing on how hard and expensive it is likely to be to get a power bar widely distributed. Both prospective partners will read as many technical books and trade magazines about small food companies they can get their hands on.

Nolo also publishes LLC Maker, a computer program that automates the process of creating a limited liability company in all states (available Fall 1997). Like shareholders of a corporation, the owners of an LLC cannot be liable for company debts beyond the amount each has invested in the company. However, unlike a corporation, an LLC is not subject to income tax as a business entity unless its owners choose to be taxed this way. More commonly owners choose to be treated like a partnership for tax purposes with LLC profits "flowing through" to the owners, meaning that any profits the business earns are subject to federal income tax only on the owner's personal tax return.

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