How Do I Form A Partnership?
My friend and I would like to form a business. Can someone point me in the right direction? I'm in Illinois. I'm curious as to what types of partnerships can be forged, the incubation periods (i.e. how long does it take), and the steps necessary to get everything set up.
We'll basically be buying and holding long term with very little positive cash flow. We will be purchasing the houses on 15 year loans and renting them out - main strategy here is equity as we both have primary jobs that leave us with extra cash.
Any direction, sources, or tips would be deeply appreciated.
thx,
Brian
There are no hard and fast rules about how to set up a P'ship, and that's one of their drawbacks.
Many oral P'ship agreements are established, regretably, and many of those eventually end up in court where the partners are warring against each other with different versions os what was promised by whom, etc.
Most lawyers would definitely recommend a written P'ship agreement, once you & your other P's make an agreement to do anything...and you should select some business lawyer to do it for you.
An office lawyer who handles lots of business matters is the one to deal with.
Call your local SBA/Score office.
They do a very nice class on Business organizations.
I know this is a super basic question and has probably been covered many times on this forum but what are the benefits of a partnership vs. a multi-member LLC?
Thx
Brian