Starting a business is not always a solo process. Indeed, many entrepreneurs in Georgia embark on new business ventures with friends or even family members. Partnerships can help create a strong foundation for startups to grow and thrive. However, you might be feeling a little lost when it comes to selecting the right partnership for your situation.
What is a partnership?
A partnership is when at least two people intend to carry out a business venture as co-owners with the intent of making a profit. Partnerships are different from corporations and limited liability companies, as partners are not required to meet statutory requirements. However, there are several types of business partnerships which have rules for formation, such as:
- General partnerships
- Limited liability partnerships
- Family limited partnerships
Which partnership should I use?
There are benefits and drawbacks to all partnerships. For example, in Georgia a general partnership can be created without a written agreement, making it a quick and easy way to get started. However, there is no limit on liability for general partners, meaning that you will be jointly liable for things like debt. A limited partnership has a more robust requirement for written agreements, but may be more appropriate if you are interested in limiting your own liability.
Whether your chosen form of partnership requires an agreement or not, you should still consider creating a written partnership agreement. This agreement can clearly address responsibilities and may even be useful for avoiding or ending future disputes. If you are unsure of where to start with your own partnership agreement, be sure to visit our website for more helpful information.