A favorite business entity for many years, the Partnership allows for ease of formation, ease of control over day-to-day affairs and relatively simple tax treatment. Partnerships can include corporations and other business entities as partners. 

Partners cannot usually restrict their responsibility for partnership debts and other obligations to the amount of their investment (like a Limited Partnership can). In general, all of the personal property of each partner is potentially exposed to liability for partnership debts.

The major drawback to this form of ownership is its lack of legal protection for the partners. If the actions of one partner create a partnership obligation it is possible that another partner may be held financially responsible for the obligation. A well-drafted partnership agreement may be necessary to protect the interests of the partners because in the absence of such an agreement with specific provisions, the terms of the Business Organizations Code apply to the business. In some instances the Code supplies terms which are undesirable to the partners or have other unintended results.

Mike Hrabal has experience representing individuals who have formed a partnership and in drafting partnership agreements. He can provide you guidance as to the most appropriate legal entity for your type of business and can assist you by preparing the documents necessary to carry out the intentions of the business owners.