Business Joint Ventures / Partnerships
When considering starting your small business (also known as entity formation), it may be in your best interest to start a business partnership. There are two main types of business partnerships. A general partnership may be formed with or without a written agreement. In most cases, a good partnership lawyer will nearly always advise you to make a business contract because your rights will always be better protected with a written agreement. Limited partnerships and LLPs are only created with a written contract and LLPs have certain limitations on the type of business that can form (for example, a law office, an accountant’s firm, and so on).
A joint venture, on the other hand, is a partnership for a limited time only. It is typically limited to a single project. This can be useful for starting businesses that you intend to sell, or for partnerships in which one partner enters into the relationship wanting to their shares of the company fairly early in its existence. A good partnership lawyer can advise you which of these types of partnerships with best suit your needs.
There are distinct tax advantages to having a partnership or a joint venture. In most cases, the taxes are passed onto partners on their individual tax returns. This means that the losses from your business can reduce your taxable income. On the other hand, the partnership can’t retain it’s earnings for future investments because profits are distributed annually.
Whether you chose a general partnership or a joint venture, a business partnership gives you flexibility in how your fund and manage your start up or small business. An experienced partnership lawyer can make a business contract that suits the type of business and the length of the project you are working on to give you the maximum benefit from a partnership.
The Law Offices of Steven Brian Davis have over thirty years of experience serving the small business community in North County, San Diego. Because of our experience with small businesses and start-ups, we can act as anything from you partnership lawyer to your business contract lawyer negotiating on your behalf. Whatever role we play, our experience makes us adept determining the needs our clients and representing them for the most benefit.
Call The Law Offices Of Steven Brian Davis today: (858) 451-1004