Looking Ahead

Looking Ahead

As you conduct your business, keep in mind that forming your partnership is not necessarily an end in itself. Like any business entity, a partnership is an ever­-changing operation. Partners may come; partners may leave; and, the business climate changes. Along with considering how to best change with the times to keep your business competitive and profitable, you may need to consider whether your partnership agreement needs to change, or even whether the form of your business should change.

As your partnership becomes larger or more profitable, you may want to consider changing to a corporation or limited liability company. This will largely be determined by tax ramifications and your potential for personal liability for partnership activities.