Shareholder Dispute Lawyer Rockville MD
Are you thinking about setting up a business partnership in Maryland? If so, you need to be certain that a partnership is the appropriate legal structure for your particular business. For those seeking to go into business, there are multiple legal forms available, and each offers its own unique advantages and disadvantages. To help you assess this question, a business lawyer Rockville MD offers has put together a list of the pros and cons of forming a partnership. For more detailed information, contact a business and shareholder dispute lawyer in Rockville MD from the Law Office of Daniel J. Wright.
The Advantages Offered by Partnerships
Quick Access to Additional Capital: Starting a new business is notoriously expensive. For example, if you are operating as a sole proprietor, you will be forced to bear much of the costs by yourself. However, if you are working in a partnership, you will have quick access to additional capital, as well as cost-sharing for your fixed expenses.
Low Barrier to Entry: Compared to some other business structures, forming a partnership is relatively easy. Indeed, it is generally cheaper and faster to set up a partnership than it is to create an S-corporation. There is far less paperwork required. Further, the very nature of partnership provides considerable flexibility to the partners.
Pass-Through Taxation: Partnerships allow for pass-through taxation. In many cases, this allows for business partners to limit their total tax liability. As income earned by the business will be “passed through” and taxed to each partner personally, there will be no need for the partnership to file its own return. When forming a new business, it is always important to consider taxation as one of your expenses.
A Rockville MD Shareholder Dispute Lawyer Discusses Potential Drawbacks of Partnerships
Lack of Liability Protection: You know to consider your potential liability when forming a business. One of the biggest disadvantages of a partnership is that this legal form does not offer liability protection to the owners of the business. Partners can be held personally liable for all the debts and expenses incurred by the business.
Potential Management Issues: As partnerships are personally invested in their business, partnerships do sometimes end in fierce disputes. Should an intractable dispute arise, the partnership may even need to dissolve, in accordance with the process set forth by the state of Maryland. Before entering into a partnership, it is imperative that you have a strong partnership agreement that will fully protect your rights and interests should there be a serious disagreement.
Do You Need a Business and Shareholder Dispute Lawyer in Rockville MD?
Our team is standing by, ready to assist you. At the Law Office of Daniel J. Wright, our top-rated business litigation lawyers handle all aspects of partnership cases. If you need help with any area of business law, contact our office today to set up a business and shareholder dispute lawyer Rockville MD clients recommend.