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Buyers > Tools > Business
Organizations
Partnership
This information came from the State of New Jersey’s Web site.
Check with your accountant, lawyer or small business advisor for the most current information or changes to the tax law for this type of business organization.
In a partnership, the
liability of each general partner for all the debts of the firm is
unlimited and both parties are personally responsible for all the
debts of the business. The amount could be in excess of the amount
invested in the business.
A partnership lacks continuity – the
business terminates upon the death of the owner/partner, or upon the
withdrawal of a partner. Some situations call for a limited
partnership (Refer to the NJ State Statured--N.J.S.A
42:2a).
There are several factors to consider when evaluating whether to take on a partner:
- Financing. It is the owners’ responsibility to provide, or
obtain
from others, sufficient money to establish a firm foundation
for the
enterprise.
- Missing technical or management skills. You can obtain
skills you
are missing through a business partner.
- Base your decision on logic and not on emotion. Look at
compatibility,
personality and character, as well as the ability to
render
technical or financial assistance.
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