The Legal Structure of Your Wedding Planning Business – Partnerships

 

In my last post I talked about owning a business yourself. This time I’m explaining partnerships.

General Partnership
If you and a friend decide to start a wedding planning business together, you can be co-owners and form a partnership. You should be clear about your individual responsibilities and should be equally committed to the business. Both of you will be personally liable for any and all obligations and debts the business incurs. If you have the slightest feeling that something could go wrong in the partnership, don’t do it. If you want to proceed, have an attorney draw up a legal agreement.

Limited Partnership
This is a type of partnership that is entered into with the assistance of an attorney. It allows someone to invest in the business and limits their liability to the amount of their investment. They are not involved managing the business, that is left to the general partners. Any assets of general partners can be used to payback debts owed to limited partners.

More about business entites in the next post.



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