A partnership is a venture that is formed between two or more persons for a business purpose and usually involves sharing of expenses and profits. Under Georgia law, a partnership may be formed through a verbal understanding to share profits and expenses. While no formal legal action is required to form a partnership, the result of creating such a partnership can have dramatic consequences. A common law partner is responsible for debts of the partnership. Also, a partnership can be difficult to dissolve and break up.
There are many alternatives to creating a common law partnership form of doing business in Georgia and nearly all are preferable to the common law partnership. Persons need to consult an attorney before commencing business with a partner in order to explore alternatives to a common law partnership, to prepare for the ultimate break up of the partners, to explore the possibility of a buy sell agreement, and to determine what other issues need to be addressed between business partners.
The term "partnership" is sometimes used interchangeably by lay persons and clients with other forms of business such as a limited liability company also known as an LLC or even a corporation with a limited number of shareholders. Where a true partnership has created a dispute between other persons, the attorneys at Teague & Chambless, LLLP are experienced in representation of partners in courts in Forsyth, Fulton and Cobb Counties. Effective representation in a partnership break up is crucial to preserve a partner's equity and rights to share in the partnership profits and to avoid personal liability for the partnership debts. Teague & Chambless, LLLP has experience in partnership breakups, disputes over partnership business, and disputes regarding a partner's share in the partnership profits.
