What is Partnership Liability, and How Can it Impact My Business?

Partnership in business is when two or more individuals are co-owners in a business geared to make a profit. Partnerships are under The Revised Uniform Partnership Act (RUPA). While they may get complex depending on the business type and the company’s business model, there is only one requirement needed to form a partnership – individuals intending to be coworkers as the business makes money. 

There are, however, legal formalities that must occur to make a partnership official. We recommend seeking out the legal advice of a corporate law firm in Miami before finalizing your partnerships. This can help protect you or your company. Most partnerships will have a partnership agreement. You may need an M&A attorney in Miami to review this. This agreement outlines the ramifications of the relationships, including each person’s rights and obligations. 

Partnerships may be made verbally, can be implied, in written form, or from one of the partner’s actions. Written forms are the best way to go about creating a partnership as they are ready to reference to dissolve disputes and solve legal issues. 

Partnership liability happens when the division of responsibility with debt and losses of a business partnership occurs. It can also refer to how each individual in the partnership may be held legally responsible for any violations to the partnership that may occur. In some cases, it can even refer to injuries brought onto an individual or business that happened due to the partnership. 

To seek legal guidance through your partnerships with your business, contact us at 305.740.1940, or email us at info@adsllp.com