Drafting Partnership Deed Online | Time Saving, Expert Writing & Affordable

• General Partnership (GP)
• General partnership can be easily created.
• State filing not required in general partnership and can be created once the business activities start.
• Operational cost is low and Formation filing fee, state fees or franchise tax is not required.
• General Partnerships are include business license and permissions necessary for business operations.
• Less ongoing requirements as it does not require annual meetings.
• General Partnership Agreements defines the management of partnership, partner roles, termination clause and other important aspects.
• General partnerships helps in keeping individual assets and business assets separate.

• Limited Partnership (LP)
• General partners have unlimited liability.
• Limited partnership requires one business partner to have unlimited obligation who is also the general partner(s).
• Limited partners have restricted liabilities towards their personal assets, and they cannot use it for debts.
• The liability amount is limited for investment in limited partnership.
• Management does not include limited partners and general partners monitors the daily operations.
• The projects are short term. Limited partnerships involves special businesses like films, real estate planning and family estates.

• limited liability partnership (LLP)
• Business services are professional. Limited liability partnerships are created by specific specialized service businesses. These expert services include attorneys, accountants, doctors, architects, and other professionals.
• Protection of personal assets. Personal assets under LLP cannot be used to fulfil business obligations and responsibilities. LLP does not protect the business partners from personal liabilities. If partners are found of personal malpractices, LLP can not help themin reducing the liabilities.

• Can be created easily
• Large number of resources are available
• Better and collective decisions are made in a Partnership Firm
• Business operations are highly flexible
• Risk is low as it is shared
• Each partner’s rate of interest is protected

Any regulated partnership deed structure must have the following clauses as they are important for the partnership firm:

• The Names and Addresses of the Partnership firm along with its foremost business
• Names and Addresses of all business partners
• The invested capital amount contributed by each partner
• The firm’s accounting period
• The date of inauguration of partnership
• Regulations concerning an operation of Bank Accounts
• Profit and loss sharing percentage
• The rate of interest on principal amount, loan, etc
• Type of auditor’s appointment (if any)
• Wages, commission, and payments if outstanding to any partner
• The rights, responsibilities, and obligations of each partner
• Settling of loss occurring from bankruptcy of one or more partners
• Settlement of accounts on the closure of the firm
• Process of a resolution of disputes among the partners
• Guidelines to be supported in case of admittance, retirement, the demise of a partner and matters relating to the conduct of business.
• Typically, all the matters concerning the relationship of partners among themselves are included in partnership deeds.