General Partnerships
This type of business entity is created when 2 or more co-owners conduct a
business for profit. The partners own the assets and are individually
responsible for the partnership debts. A Partnership Agreement is usually
drafted wherein the management, the day to day operation, duration,
transferability of rights and manner in which the profits and losses are shared
is specified.
Each general partner is an agent of the business entity. Each partner is jointly and severally, personally liable for debts and taxes of the partnership. In the same light, each partner may be held jointly and severally liable for a co-partner’s criminal or civil acts.
Limited Partnerships
Setting up a LP is governed by the California Limited Partnership Act and
requires a filing of a certificate with the Secretary of State. There are some
similarities as with creating a corporation in that there are restrictions as to
use of the business name, conducting meetings and other conditions.
The main benefit of this type of business entity is to promote investors to contribute capital without being more monetarily liable than the capital they have contributed. In a LP, 1 or more general partners manage, control and conduct the day to day business while the “limited partners” contribute capital and share in the profits. General partners can be held liable for the entire partnership debt, wherein the limited partners are only liable for their capital contribution.
Unlike a general partnership death, withdrawal, or disability does not dissolve a limited partnership..
If you are ready to go forward with either type of Partnership, please navigate to our Order Form or contact us at the information below:
California Incorporation Services Inc.
1632 19th Street, Santa Monica, CA 90404
info@calincorporationservices.com
(310) 453-6911
Toll Free: (800) 335-0095
Fax: (888) 483-2030
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GP Checklist
- Have you decided on a business name for your General Partnership?
- Have you searched the availability of your General Partnership's chosen business name, and for similarity to existing names?
- Where will the principal place of business be?
- Have you chosen the General Partners and gathered their information?
- What is the term of the partnership?
- What will the "purpose" of the partnership be?
LP Checklist
- Have you decided on a business name for your Limited Partnership?
- Have you searched the availability of your Limited Partnership's chosen business name, and for similarity to existing names?
- Where will the principal place of business be?
- Have you chosen the General Partners and gathered their information?
- What is the term of the partnership?
- What will the "purpose" of the partnership be?
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