In most cases, the formation of a partnership will be an intentional act of the partners (see Part 1 to determine if there is a partnership if there is any doubt), but that does not mean that there will be a written partnership agreement – in the partnerships that the official beneficiary meets, the existence of a written agreement is probably the exception. The designation of your business partnership is actually a very important step in the creation of your partnership agreement, as it formally establishes the business unit for legal purposes. Members of your partnership should register the fictitious partnership name with the Landratsamt office, which is responsible for the company. This will ensure the availability of your partnership name and establish a legal statement of when your business partnership took its fictitious name. All partnership documents must use the name of the partnership as soon as you and your business partners register it. The Compleou in a limited partnership (a partnership with a Kompledochner and a sponsorship or partner) is the person responsible for day-to-day transactions and decisions. The shareholder is responsible for debts and liabilities within the company. Partnerships are unique business relationships that do not require written agreement. But it`s always a good idea to have such a document. Because partners share benefits equally in the absence of a written agreement, you may find yourself in situations where you feel like you`re doing all the work, but your partner is still getting half the winnings.
It is always wise to deal with important issues related to your business in writing. “My recommendation is to include a mediation clause in your partnership agreement to provide a procedure that will allow you to resolve major conflicts,” says Susan Solovic, serial entrepreneur and best-selling author of It`s Your Biz. A mediation clause can often settle disputes and repair labour relations. Taxes are paid by individual income tax returns of partners. As a partner, you have income from your share of profits (or a loss if the partnership loses money) and you declare that income on your personal taxes. The partnership itself reports profits and losses to the IRS on a special form (so the IRS knows how much you will receive) and you pay taxes on your share. You should register the name of the partnership with your Landratsamt to ensure the availability of the name.