In Georgia a partnership is a type of business entity in which two or more partners engage in a business venture to share the profits and losses of the business venture. The partners can be either individuals or another entity such as a corporation. A partnership agreement can be written or oral. Partnerships are not incorporated and are not limited liability companies and unfortunately, tend to be treated less formally by the partners. This lack of formality can lead to misunderstandings by the partners and litigation. It is always advisable to enter into a detailed written partnership agreement drafted by an experienced lawyer before commencing business or committing assets to the partnership. If there are topics which the partners neglected to address in their partnership agreement, the Georgia Code will in some instances take over and impose terms on the partners. Since the partners in a general partnership are liable for the acts of other partners in the pursuit of the business venture and are also liable for the debts and acts of the partnership, it is most often not advisable to carry on a business in a general partnership. Georgia law offers partners the right to elect limited liability by the filing of a limited liability election, thus making the partnership a limited liability partnership. Limited Liability partnerships have similar characteristics to a Limited Liability Company. Limited liability Companies and Limited Liability Partnerships afford all of the tax benefits of a general partnership along with limited liability protection from the debts and acts of the partnership and the other partners. Other business entity options include business corporations, professional corporations and limited partnerships. Mr. Raines is experienced in the operation of partnerships and negotiating and drafting partnership agreements and can protect your interests in entering into a partnership.

Thomas E. Raines, PC represents clients throughout the Atlanta metro area including the cities of Norcross, Alpharetta, Roswell, Sandy Springs, Johns Creek, Marietta, Decatur, Lilburn, Lawrenceville, and Cumming. Contact Thomas E. Raines, PC today.