When two or more people come together to operate a business, they are said to be in a partnership. In a general partnership, each partner shares profits and losses equally unless otherwise specified in the partnership agreement. For general partnerships, there is no need for a written agreement to make the partnership valid.
Michigan entrepreneurs may be interested in learning about the different types of business that can be formed. One type, a partnership, is a simple way to structure a business. They have no formal requirements and do not necessitate paperwork, but in some cases, outlining duties and obligations may be beneficial. There are a number of different types of partnerships. Each type provides varying benefits and restrictions.
Michigan business owners may want to take note of a case in Delaware involved a limited partnership agreement. The Delaware Court of Chancery was involved in the case and addressed important business planning concerns as noted in the contract language between the parties. Concepts such as good faith and fair dealing were weighed in light of contract language rather than as abstract moral issues.