There are several types of business entities which can be formed. We recommend that you read Types of Business Entities before completing the Partnership Worksheet. Also, the Business Entity Planning Worksheet included in this program may be helpful in determining the type of entity that is most appropriate for a particular business. If you determine that a partnership is the proper type of entity for you, you can use this Partnership Worksheet to organize the information a lawyer or other advisor will need to prepare the documents necessary to form the partnership. This Worksheet can serve as an educational tool as well as help to organize the relevant information. It allows you to provide information about each owner including whether an owner will be a general or limited partner, and explain the nature of the business, how profits and losses of the business will be divided, whether the partnership will continue after the withdrawal or death of the partner, and how the partnership will be managed. This information will assist an attorney or similar advisor in preparing a partnership agreement that describes how key elements of the business will be handled. State laws for partnerships provide "default" rules that apply, if certain issues are not addressed in the partnership agreement. For example, most states provide that a partnership terminates upon the death of a partner. If the partners want the partnership to continue after the death of a partner, they should include a specific provision in their partnership agreement that explains what should happen if a partner dies. A partnership agreement is a document signed by each partner that sets forth the intentions of the partners regarding various important issues, which may include the distribution of profits, the procedures for handling the death or withdrawal of a partner, or other matters. An attorney or similar advisor should be consulted to assist in preparing the partnership agreement. Usually, a partnership has just one name (a "legal" name) that is used for all purposes. However, sometimes a partnership uses one name for legal purposes, including tax purposes, but uses another name (a "trade" name) for conducting its business with the public. For example, "ABC Partnership" doing business as "Joe's Bar and Grill". |