Simply put, whenever two or more people own a business together and share in its profits and losses, they are said to have a partnership. However, it is always a good idea to get a partnership agreement in writing, so as to make sure everyone has the same expectations. A written agreement can save a lot of headaches later on, if or when the partners have disputes or decide to part ways.
Choosing the correct legal formation for a new business is crucial. This choice will have major legal and financial implications for the future. It will determine not only the amount of taxes owed, but also whether or not the business qualifies for certain types of funding.
Many entrepreneurs in Colorado will decide that they want to open their own small business. Part of the business formation process includes obtaining any necessary federal and state licenses and permits. These licenses and permits are required by law if the activities the business engages in are regulated by federal or state agencies.
Business partners in Denver often share the same passion for their jointly-owned enterprise, but it is still important to ensure that they have the same expectations about their respective roles in the business and a set of rules on how their business should be run. Therefore, they may want to execute a partnership agreement as part of the business formation process. Not only could such an agreement resolve disputes before they occur, but without one the business may be governed by state law.
In a sole proprietorship or partnership, generally the owners of the business can be held personally liable for the debts and actions of the business. This is obviously not desirable to most small business owners in Denver. Fortunately, there are other ways to structure a small business that limits the business owner's personal liability for the debts and actions of the business.
Starting your own business or purchasing an established business in Colorado is an exciting endeavor, but it can also be an overwhelming one. For example, while you may have a grand vision in sight for your new business, it is necessary to ensure that all legal formalities are met -- something many people do not have much experience with.
When individuals in Denver join forces to form partnerships, they often see years of success as their business grows over time. However, the time may come where partners want to dissolve their business. They may each want to go their separate ways as they pursue new business opportunities, or they may simply be ready for retirement. Whatever the reason, when it comes to winding down a business, there are steps that need to be followed to ensure all the proper legalities are fulfilled.
What is a business without a name? Some of the biggest business names world-wide conjure up products or services that are, "household names." In fact, it could be said that name recognition is a cornerstone of a successful business enterprise in Colorado. Therefore, it is important to choose a name that is unique.
As the old saying goes, "It takes money to make money." Many small businesses need financial resources to get their business off the ground. There are two general choices for funding a small business: debt and equity.
When a person in Denver sits down and makes plans to establish their own family business, the idea that they will eventually leave the business may not cross their mind. However, succession planning can be made part of the business formation process. Having a succession plan in place from the get-go can help ensure the family business is left in the hands of the right person.