Legal Forms of Ownership for Small Businesses

As part of our legal forms of ownership for small businesses discussion, we recently discussed an overview of sole proprietorships. Today, we are continuing this discussion with an overview of general partnerships.

The most basic form of a business entity is a general partnership, which consists of an agreement between two or more individuals to share a mutual interest in a business endeavor and to share its losses and profits.

A general partnership is formed by the activities or actions of its partners, or through a written agreement, and does not require the partners to file anything with the government.

General partnerships are advised to enter into an agreement known as a "partnership agreement", which is a kind of entity governance document that includes any rules governing the relationship among the partners and any rules governing the partnership's operations. A partnership agreement may include:

- Authority of Partners

- Dispute Resolution Process

- Entitlement of Partners

- Management Responsibilities

- Name of the Partnership

- New Partners

- Ownership Interest

- Partnership Continuity

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*This blog post should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information purposes only.