Business Structures in Utah: General Partnerships

by Norris Law Group on October 15, 2014

Business Structures in Utah: General PartnershipsIn our previous post, we discussed the “pros and cons” of structuring a Utah business as a sole proprietorship. But that is by no means the only type of business structure available to Utah business owners, as explained beginning on page 4-1 of the free online guide titled How to Do Business in Utah. In this edition, we examine a structure for a business owned by two or more individuals: the general partnership. A Utah general partnership is essentially “an association of two or more people acting as co-owners of a business for profit.” General partnerships may be set up with either a written or oral agreement between the co-owners. Other features that may make general partnerships relatively easy to create include the fact that they:

  • do not require any official registration with the state;
  • put any liability for loss in the business squarely on the personal assets of the partners;
  • require that profits and losses be shared among the partners; and
  • must file federal and state tax returns.

Although a general partnership can literally be set up with “just a handshake,” it’s still a good idea to consult with an attorney experienced in setting up business structures in Utah. Attorney Graham Norris and his associates at the Norris Law Group serve the residents of Utah County, UT and throughout Utah, Wyoming and Idaho. Contact them today at 801-932-1238 or online for a free consultation.

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