Types Of Partners In A Partnership Agreement

As has already been said, there are three main types of partnerships. Each type has its own advantages and disadvantages. A partnership is a business that two or more people own and manage together. Unlike other business structures, there are several types of partnerships you can create. For such a type of partnership, the partnership is valid for a specified period, for example. B 5 years, 2 years or a fixed period. The partnership ends automatically after the expiry of this period. Business partnerships are often compared to marriages, and for good reason. A sub-partner is a partner who associates another person in their share in the business. He gives part of his share to the person. It is important to note that the relationship does not exist between the sub-partner and the partnership enterprise, but between him and the partner. Therefore, a sub-partner is a non-entity of the company and assumes no responsibility towards the company. Unlike the complementary company, the Limited Liability Partnership is a form of corporate organization company.

In this type of partnership, commitments are limited to each partner based on the contribution they have made to the company. In addition, the personal property or property of the partner cannot be used to reimburse the liability of the company. It is important to note that this organization is not subject to the Partnership Act 1932, but to the Limited Liability Partnership Act 2008. Both limited partners and complements receive a share of the partnership`s profits and losses (this is called your partnership interest), based on their percentage of ownership of the partnership, as defined in the social contract. In addition, only a natural person has the legal right to become a partner in a partnership company. In a complementary company, all partners have the independent power to engage the company in contracts and loans. Each partner also has overall responsibility, which means that they are personally liable for all debts and legal obligations of the company. A minor may not enter into a contract under article 20 of the Partnership Act. A contract with a minor is not concluded. Since partnership is a relationship resulting from contact, a minor cannot be a partner in a business. The types of partners differ depending on their activity in the partnership and their responsibility. Responsibility in a partnership, as in other companies, involves the individual responsibility of partners of two types: partnerships are one of the many types of business.

Other types of activities are sole proprietorshipsAn individual (also known as a sole proprietorship, sole proprietorship, or property) is a type of business without its own legal personality, owned solely by limited liability companies (LLC) Limited Liability Company (LLC) A limited liability company (LLC) is a business structure for private companies in the United States, which combines aspects of partnerships and entities. and businesses. To form a partnership, you must (1) register the partnership in the state where it will do business and (2) establish a partnership agreement defining what each partner is responsible for, the different types of partners, how the partner`s property works, and how to manage changes in the partnership. . . .