If you go into business for profit with someone, and if you don’t create a company like a corporation or an LLC, then your business automatically will be a partnership. However, a partnership does not give you any asset protection — you are 100% liable for the debts of the business — and it also gives each other partner the power to sign a contract that legally binds the business, even without your permission or knowledge.
Please visit the latest issue of Valley Business Front March [PDF link] for Keith Finch’s latest legal perspective on business pitfalls.
And if you’re interested in learning more about how to choose the right type of entity for your business, join us at our next round of Shark Bites this month.
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