How Does a General Partnership Work?

In Business Organizations by Coolidge Wall

For those who do not want to start a new business on their own, there are different types of partnerships to consider. Perhaps the simplest and easiest is called a general partnership. Unlike other forms of business organization, such as a corporation, there are no required formalities for forming a general partnership. Nor must the partners create a written partnership agreement, though it is often a good idea. Legally, a general partnership exists when two or more people are carrying on as co-owners of a business and sharing the profits. They are not allowed to draw a salary on top …

Professional organizations are for certain specialized fields

In Business Organizations by Coolidge Wall

Of course, few Ohio corporations are owned and operated by amateurs. But a professional corporation or professional association is different than other types of incorporated businesses. In general, professional corporations are for groups of people in certain types of specialized fields who wish to organize as a single business. These professions include: Attorneys Health care professionals, such as doctors, dentists and physical therapists Psychologists Veterinarians Engineers Accountants Social workers Some states require people in those professions who wish to incorporate their practice to do so as a professional corporation. Other states do not require it, but do offer it as …

Ready to Throw Out Those Old Tax Records?

In Tax by Coolidge Wall

Once again, the tax filing season is behind most Americans, leaving in its wake another batch of paper and electronic records for taxpayers to add to what may already be a large collection of old tax papers and files. So, how long should you keep these files, and what documents should be saved in the archives? Some taxpayers keep everything. Others prefer to only keep records for a minimum required period, like “three years,” “four years,” or “ten years.” Unfortunately, there is no “bright-line” answer on how long to keep tax records or how much to keep. Instead, the answer …

A Business Merger or Acquisition Can Get Complicated

In Business Organizations by Coolidge Wall

Buying or selling a business is not as easy as, say, ordering new office supplies. Whether your business is acquiring a competitor in order to expand, or you are looking to sell off your company to another party, there could be multiple players involved, as well as legal questions that need to be answered. First of all, if a company is acquiring another company, or two businesses are merging, there will be multiple stakeholders involved. Once negotiations between the companies are complete, usually the target company’s shareholders must approve the deal. The acquiring business will often sweeten the deal by …