A San Diego business lawyer can provide assistance if you are forming a partnership to conduct business. There are significant advantages to operating a business with a partner, including combining talents and sharing risk. However, depending upon the type of partnership, there are also risks – including the possibility of becoming legally responsible for actions taken by any or all of your business partners.
Making the right choices during partnership formation is vital to protecting your personal wealth and your business interests. Gehres Law Group can help you with all aspects of partnership formation, whether you are starting a business or expanding an existing company and considering transitioning to a partnership. There are a few key reasons why it is important for you to get the proper legal help with partnership formation as your company gets off the ground.
An Attorney Can Assist you in Determining If a Partnership is Right for You
If you wish to do business with others, a partnership is only one of your options for shared ownership. You should also consider incorporation as well. Gehres Law Group can explain the different types of business entities that allow you to do business with other people so you can determine which type of business structure is best for you.
An experienced San Diego business lawyer at our firm can also assist you in choosing between a general and a limited partnership. A limited partnership can offer more protection for the personal assets of limited partners, as their potential loss will be restricted to their investment provided they actually act as limited partners. In a general partnership, a company bankruptcy could result in personal bankruptcy and judgments or claims against the company could put personal wealth at risk.
A San Diego Business Lawyer Can Help Comply with Legal Obligations for Partnership Creation
If you determine that forming a limited or general partnership is the best approach for structuring your business, Gehres Law Group will assist you in complying with all legal requirements within the state of California. For example, as the California Franchise Tax Board explains, every partnership which earns income or does business in California is required to file a Form 565, Partnership Rules of Income. Limited partnerships also must pay an annual tax to the state of California.
When a limited partnership is formed, a certificate of limited partnership must also be filed with the Secretary of State. And, any business that formed a limited partnership in a different state which decides it wishes to do business in California must first register with the Secretary of State before actually doing any local business.
San Diego business lawyers will advise you on the types of paperwork that must be filed before you begin operations, and can help you to understand the legal implications of partnership formation. Gehres Law Group will also explain how your partnership formation will affect your tax obligations so you can ensure you comply with state tax rules and IRS mandates.
A San Diego Business Lawyer Can Assist With Creating Partnership Agreements
If you form a partnership, it is advisable to create a partnership agreement. This agreement will spell out the terms of your relationship so you can reduce the chances of conflict once business operations begin. It is up to you and your partners to establish how the business partnership will be structured, how responsibilities will be shared, and how profits and losses will be shared. Gehres Law Group can assist in negotiating on these issues and creating a legally enforceable document so your rights are protected.
We can also help with other important contracts and paperwork that you may wish to put into place to protect your interest in the business and to reduce the chances that a conflict could adversely impact operations. Other documents that you may wish to produce could include, for example, a buy/sell agreement and employment agreements so it is clear what each partner’s specific job responsibilities will be within the organization.
Getting Help from San Diego Business Lawyers
Gehres Law Group has provided assistance to many clients in forming business partnerships and in forming other types of business entities including S-corporations and C-corporations. A San Diego business lawyer at our firm can provide you with the information you need to determine if forming a partnership is right for you and can guide you through the process of forming a partnership so you can maximize the chances your business relationship will be a successful one. To find out more about how our firm can help you, give us a call at 858-964-2314 or contact us online today.