Risks of a General Partnership

If you are in a partnership, you are truly partnered with the other people in every respect of the word. What they do wrong is what you do wrong. You are fully liable for the debts of the partnership and anything else that happens. For example, if one partner is involved in a car accident, all of the partners are legally responsible for paying the damages. The same goes for any debts that one of the partners runs up in the name of the partnership.

In other words, the partnership can be a liability nightmare for the unsuspecting partner. You may be going about your business and doing nothing wrong and find yourself on the receiving end of a large bill that can destroy your finances and credit permanently. When you go into business with a partner, you are trusting them with your future and practically your life.

Partnerships may also lack the protection and business continuity of other corporate forms. If one partner dies or leaves the partnership, there is a risk that the entire partnership could dissolve. There is less of a lasting structure in place to protect the partnership.

This is not to say that a partnership is never a business form that you should select. Instead, you should have your eyes open and protect yourself to the fullest extent possible. You should hire an attorney to help you select the proper business form that can promote a lasting business with the fullest possible protection for you.

Contact a Boca Raton Corporate Attorney

The lawyers at Rubino Findley PLLC are business attorneys who help our clients handle complex matters, so they can focus on earning revenue. To schedule an appointment to speak with a lawyer, call us at 561.220.0741 or send us a message online.