SELF-HELP LEGAL KITS
The Divorce Store®PARTNERSHIP KIT
The Complete Partnership Kit
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The Divorce Store® Partnership Kit is the newly revised, updated and expanded. It revises in substance and utility the original Partnership Kit published in 1992, and subsequently revised in 1996 to provide separate notary acknowledgements for both the States of California and Florida, as required by legislative adoptions to the notary laws of these two states. The real and recognizable changes that are included in this kit include the addition of two increasingly popular types of partnerships, namely: (1) Limited Liability Partnership and (2) Family Limited Partnership. Each will be described in-depth in the chapters that follow, but more importantly, the range of partnership options now available with this kit have been significantly increased to the extent that it is now possible to utilize a partnership not only as a business venture, but also, (a) to engage in estate planning, (b) to limit the business liability exposure, (c) to make the personal estate judgment proof, and (d) to structure the business profits in a manner that takes advantage of the most favorable income tax laws. Family and Limited Liability Partnerships must meet the organizational requirements of State Laws; however, while the procedures for formally organizing under state laws may vary, it is the Internal Revenue Service who will have the last word on whether the partnership meets the taxing requirements of the Internal Revenue Code. A cursory review of the Check List that follows the Cover of this Kit shows that this Kit includes, in addition to the four separate partnership agreements, namely: (1) General Partnership, (2) Limited Liability Partnership, (3) Limited Partnership, and (4) Family Limited Partnership; pre-drafted partnership operational documents, such as: Partnership Property Agreements, Partnership Loan Agreements, Agreement Admitting Limited Partner, Consent of Statutory Agent, Limited Partnership Certificate and a Declaration of Irrevocable Trust. The Declaration of Irrevocable Trust is included in this Partnership Kit for the purpose of allowing the parent of a minor child, who desires to give such child a limited partnership interest, to establish an irrevocable trust on behalf of the child and legally transfer the limited partnership interest to the irrevocable trust, while acting as trustee under such trust. The limited partnership transfer must of course be legally made, that is, it must be a bona fide gift made according to law (The Internal Revenue Code). The increasingly popular use of the Family Limited Partnership can be credited mainly to their use as estate planning devices, however, a significant number are also being utilized as Itasset protection devices." Each of the chapters that follow provide both pertinent and valuable information regarding partnerships and other business organizations. A brief review of the material covered in each of these chapters is as follows: (1) Chapter One describes the three basic characteristics of a partnership, that is, the association of two or more individuals, a community of interest and the sharing of profits; (2) Chapter Two describes what constitutes the legal formation of a partnership, that is, whether it is a Partnership by Contract, a Partnership at will or a Partnership by Estoppel; (3) Chapter Three provides the definitions for each of the following business organizations, namely: a General Partnership, Limited Partnership, Limited Liability Partnership, Family Partnership, Joint Ventures, Joint Stock Companies, Limited Liability Company, Massachusetts or Business Trust, Unincorporated Associations and Subchapter S Corporations; (4) Chapter Four defines the legal theories of a partnership, that is, the Aggregate Theory and Entity Theory; (5) Chapter Five describes the advantages and disadvantages of a partnership in comparison with corporations; (6) Chapter Six describes the treatment of partnership property by the Internal Revenue Code, the Bankruptcy Code, the intention of the partners and the factors of ownership; (7) Chapter Seven definesthe rights of partners in regards to partnership property, the partnership interest and the participation in management; (8) Chapter Eight describes the partnership relations between the partners, between third parties, between the creditors and in third party tort actions; (9) Chapter Nine outlines the legal capacity of a minor child and corporation to become a partner; (10) Chapter Ton describes several of the factors that will cause both the voluntary and involuntary dissolution of the partnership; (11) Chapter Eleven provides an overview of what this Partnership Text provides; and (12) Chapter Twelve describes the procedures regarding the partnership name, the description of the partnership business, the two methods for dividing the profits and the selection and preparation of each of the four partnership agreements and related forms provided in this Kit. With this wealth of information, you can pursue your business goals with confidence and courage, and without having to spend your operating capital for legal fees. The success of your business venture may very well depend on this savings. Keep in mind that if you should later decide to pursue your business venture as a corporation or limited liability company, we do publish self-help kits for both of these entities which include text material and forms that are as simple and easily prepared as this Partnership Kit. Finally, thanks for allowing us to assist your efforts in legally organizing your business affairs. This is commendable foresight since it has been closely estimated that over 80% of all partnerships have no formal written agreement. And to the surprise of no one, disagreements and discord are the rule rather than the exception in most of these partnerships. And remember, if you have any questions, please feel free to call or write. |
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