– The most common business structures in Florida are Limited Liability Company (LLC) and Corporation.
– Partnerships in Florida can be formed with a handshake, with four types available: general partnership, limited partnership, limited liability partnership, and foreign limited liability partnership.
– For a business relationship to become a general partnership, Florida law does not impose any formalities or written agreements, but it is advisable to have a written Partnership Agreement and register with the State of Florida to prevent disputes. – A general partnership can be formed without a written agreement, but business partners can have a written Partnership Agreement if they choose to do so.
– A General Partnership Registration Statement form can be filed with the Division of Corporations of the State of Florida if business partners want to create a formal partnership.
– All business partners in a general partnership have the right to manage the business, and profits and losses are shared equally in the absence of a Partnership Agreement.
– Partners in a general partnership are personally liable for the business obligations and actions of the partnership.
– A general partnership can end when one partner gives notice of their express will to leave, unless a Partnership Agreement outlines a different procedure for dissolution. Advantages:
1. Easy registration
2. Low cost
3. Simple tax filing
4. Allows for at least 2 partners
Disadvantages:
1. Partners are personally liable for debts and lawsuits
2. Partners are subject to the actions of other partners and do not have full control
3. Limited life – one partner leaving can end the partnership
4. Difficult to raise money
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