Partnership Formation

One main reason to form a partnership is for its favorable tax treatment. Partnerships are generally viewed as an “association of co-owners,” and the profits “flow-through” to the partners, and are taxed at the individual level, rather than taxed at the “entity level” of the business.

One of the first steps to forming a partnership is drafting the partnership agreement. This agreement addresses questions including the following:

  • Where will the business obtain its capital investments?
  • How will profits and losses be divided between or among the partners?
  • May a partner borrow from the business?
  • Will salaries be paid?
  • What will the management responsibilities of the partners be?
  • If a partner dies, will the business carry on? How?
  • What is the “exit strategy” for a partner wishing to leave the business?
  • How will disputes be handled?

Lewis-Traut & Ruswick, APC can answer these questions for you.

CONTACT INFORMATION

 

 

 

 

Lewis-Traut & Ruswick, APC
949 South Coast Drive, Suite 555
Costa Mesa, CA  92626
Phone: (714) 581-8808
Fax: (714) 581-8809

 

ATTORNEYS

Christy Lewis-Traut, Esq., LL.M.: clewis@lewistrautruswick.com
Jessica Ruswick, Esq., LL.M.: jruswick@lewistrautruswick.com

 
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