Partnership Law: Overview

Partnership Law: Overview

State laws govern how partnerships are strucutred and managed. There laws generally include:

  • Each partner's authority within the partnership;
  • How liable the partners are for the partnership's debts, obligations, and legal issues;
  • How new partners can be added, or how current partners can leave the partnership;
  • If ownership in the partnership can passed on to heirs or benefactors;
  • How the partnership can be named, and;
  • How the partnership will pay state and federal taxes.

Each state is different, however, so you should refer to the partnership law in your state for more details.