Partnership Agreements Legal Forms A simple business entity that allows two or more people to jointly own and manage the operations and finances of a company. These forms include Partnership Agreements, as well a documents for use in more specific circumstances. A partnership is a relationship existing between two or more persons who join together to carry on a trade or business. Each partner contributes money, property, labor, and/or skill to the partnership and, in return, expects to share in the profits or losses of the business. For a business in which two or more people desire to share in the work and in the profits, a partnership is often the structure chosen. It is, potentially, a much simpler form of business organization than the corporate form. Less start-up costs are necessary and there is limited regulation of partnerships. A partnership is usually based on a partnership agreement of some type, although the agreement need not be a formal document. The agreement itself can be immensely useful in spelling out how new businesses will be run under the agreement. Issues ranging from capital contributions to how buy-outs are conducted are all covered under the umbrella of a partnership contract. Some of the typical provisions of a partnership agreement are: Identifying the partners. Partnership Name and Place of Business Terms of Partnership Contributions Operations and Management If youve sorted through the many types of business structures and decided to create a corporation, youre facing a list of important -- but manageable -- tasks. Heres what you must do: Choose an available business name that complies with your states corporation rules. Appoint the initial directors of your corporation. File formal paperwork, usually called articles of incorporation, and pay a filing fee that ranges from $100 to $800, depending on the state where you incorporate. Create corporate bylaws, which lay out the operating rules for your corporation. Hold the first meeting of the board of directors. Issue stock certificates to the initial owners (shareholders) of the corporation. Obtain any licenses and permits that are required for your business. A cooperative is a legally incorporated business owned and controlled by its members. A cooperative is able to enter into contracts under its corporate name. Liability for the individual members of a cooperative is limited to the extent of the value of shares held. You can only legally structure your business as a cooperative if your business is organized as, and will be operated as, a cooperative according to the Canada Cooperatives Act. For more information on how a cooperative operates and how a cooperative differs from other businesses, see Industry Canadas Incorporation Kit for Cooperatives.
Posted on: Tue, 23 Sep 2014 14:09:20 +0000
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