Category: Business

Forming Business Partnerships

Forming Business Partnerships pic
Forming Business Partnerships

Since 1995, Thomas Avellino has been managing private investment partnerships that have never experienced market losses. As managing general partner for firms based in Florida and New Jersey, Thomas Avellino is responsible for overseeing the formation and operations of such entities.

Partnerships are one of the most common business entities. They are formed when two or more persons engage in a common business for the purpose of making profit. The partners contribute capital, labor, and skill to the running and management of the partnership, and in turn, they share profits.

Forming a partnership involves drafting a partnership agreement to be filed with the relevant state authorities, often the Secretary of State’s office. The agreement details the business name and address, names of the partners, each partner’s individual shareholding, and how profits will be shared. After registration, the partners must obtain business licenses and permits before commencing operation. The licenses required will depend on individual state and municipal laws.

The advantages of forming a partnership include shared management, diversity of partners’ talents, and shared risk. The disadvantages include personal liability by partners for the partnership’s debts and shared profits.