Partnerships

A partnership is a type of business entity in which two or more partners enter into a partnership agreement to share the profits and losses of the business venture which they run as partners. The partners can be either individuals or an entity such as a corporation, limited liability company or a trust. A partnership agreement can be written or oral. Partnerships are not incorporated and are not limited liability companies and unfortunately tend to be treated less formally by the partners. It is unfortunately very common for partners to have no written partnership agreement, leading to partners having diverging opinions on the terms of the agreement and their rights to partnership profits and property. Such misunderstandings of the partnership agreement often lead to wasteful litigation which could easily have been avoided. It is always advisable to enter into a detailed written partnership agreement drafted by an experienced lawyer before commencing business or committing assets to the partnership. If there are topics which the partners neglected to address in their partnership agreement, the Connecticut General Statutes will in some instances take over and impose terms on the partners. Since the partners in a general partnership are liable for the acts of other partners in the pursuit of the business enterprise and are also liable for the debts and acts of the partnership, it is most often not advisable to carry on a business in a general partnership. Limited liability companies afford all of the tax benefits of a general partnership along with limited liablity protection from the debts and acts of the partnership and the other partners. Other business entitly options include business corporations, professional corporations, limited partnerships and limited liablity partnerships. Attorney Rubino is experienced in the operation of partnerships and negotiating and drafting partnership agreements and can protect your interests in entering into a partnership.