Announcements

Congratulations to Mary-Ann Andrews, a Sage Strategist, for graduating with a Masters Degree in Business Administration from The University of Phoenix!
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Cheri Hill will be moderating a panel discussion on Saturday, September 11 at C4CUBE's Entrepreneur's Boot Camp. The panel Cheri will moderate will be entitled, "The Marketplace: Early Decision Making --- The Idea/Market." The event will be held at C4Cube located at 300 East Second Street, Suite 1405 and registration is $99.00 ($175.00 at the door) which includes admission, handbooks & meals. This is a two day camp that will be held on both September 11 and September 12. For more information contact Lynne Keller at 775-622-9900 x 104 or email her at lynne.keller@c4cube.com.
Cheri Hill will be hosting a Sage Teleseminar with Linda McLean and the topic of discussion will be, "I'm Confused --- Are You a Mentor-Coach-Consultant." Linda McLean is a certified business and life coach and they will be discussing how you differentiate between the titles, what to look for and when and if it makes sense for you to utilize an outside consultant for your personal/business life. This teleseminar will be held on Wednesday, September 15, from noon - 1pm. .
Sage will be participating in the NCET Entrepreneurship Expo, Nevada's only Business-to-Small Business Expo. This event is FREE, open to the public and will be held on Friday, September 17, 2010 from 10am - 6pm at the Atlantis Casino Resort & Spa in Reno. For more information feel free to contact Emily Somerville at 775-853-4226 or Emily@NCET.org.
BLOG: Ask Cheri Hill

How to Incorporate - General Partnership

Whenever two or more people agree to share ownership, management, profits and liabilities, whether or not an agreement has been signed, a partnership is formed.

Advantages

Simple and inexpensive to form – no state, federal or local filings are required to form a partnership.
All partners have equal rights in the management of the partnership business.
Statement of partnership authority can be filed with the Secretary of State to record the partnership agreement and to identify the partners.

Disadvantages

General partners are jointly and severally liable for any debts, damages or obligations incurred by all the other partners.
Unlimited liability for each partner - if the assets of the partnership are inadequate to pay partnership creditors, the personal assets of the individual partners may be reached to satisfy these obligations.
No continuity of life – if any partner dies, retires, or is otherwise disassociated from the business the partnership expires unless the partnership agreement provides otherwise.
Limited financing – may only borrow money or use partners’ savings. Must be dissolved and reformed to admit additional partners wishing to invest.
Deadlock – partners do not always agree!

Tax Implications

Partnership files IRS Form 1065.
Individual partners pay tax – each partner receives a K-1 showing the distributive share of partnership income to be declared on the partner’s individual tax return.
Estimated tax payments – partners may be subject to quarterly tax payments.
Social Security – partners may subject to self-employment taxes.

Your house and your life savings can be lost through the actions of your partner. While you may have had nothing to do with the decision that was made and you may have been two thousand miles away when it was made and you may have voiced your opposition to it when you found out it was made, as a general partner you are still personally responsible for the decision.