You and your family have worked together to build a business, and your family members took on crucial roles. A knowledgeable business attorney could help you organize your family business with clear rules and structure, so everyone understands how the business works.
A limited partnership is one way to set up the legal entity of your family business. A San Antonio family limited partnership lawyer from Begum Peláez-Prada, PLLC can help you set up your partnership and protect your family’s business.
Limited partnerships assign ownership and management responsibilities to certain parties in the form of general and limited partners. The general partner or partners manage the business, while the limited partners own the company and approve certain decisions.
Limited partners receive limited liability for the company’s obligations, limited to their contributions to the business, while general partners have direct liability for running the company. A limited partnership can allow family members to share the profits of the family business while limiting exposure as well as taxation, as partnerships feature pass-through taxation to the partners when they receive income (instead of being taxed twice).
A family limited partnership differs from other partnerships because the partners are family members. Limited partnerships will often have a partnership agreement specifying how the entity is managed and the ownership stake of each partner. A limited partnership lawyer in San Antonio can craft the right entity for your family business.
Forming a basic partnership only requires an agreement between two people to do business, which does not have to be in writing. However, creating a business with only a handshake instead of a limited partnership can lead to liability for everyone, so taking advantage of a business attorney’s counsel can set up the business you need.
An attorney could explain how the structure of a limited partnership will affect your business and allow you to raise capital from family members, as well as how partners can split the profits. Your lawyer can tailor the partnership agreement to suit your needs by asking you and your family how you want to create, manage, and grow the business. Your attorney can also help you file the required documents with the Secretary of State to form a limited partnership, secure limited liability, and keep your business going year after year.
Beyond forming the partnership, a San Antonio family limited partnership lawyer could help you and your business partners select and trademark a name, acquire any applicable licenses to do business, and procure insurance policies to protect your business and the partners.
Arranging a family business requires consideration of the business’s needs, your priorities for the future, and possibly converting the legal form of the business into one best suited for you. Once the business gets going or grows into a new area, you may need further legal advice on contractual issues and future development.
A San Antonio family limited partnership lawyer from Begum Peláez-Prada, PLLC, can guide you and your family through the process of creating the partnership you want. Managing Partner Sasha Begum brings years of experience in business law and international experience and can work with you and your family to achieve your financial goals together. Contact our office for a consultation today.
