Is een VoF of BV beter?
What if one believes the other is doing too little? What if one has tax debts? What if one of you gets divorced, does that trouble the other?
When they want to begin a service, lots of business owners pick the legal type of a general partnership. The general partnership is fairly easy to start, has a lot of flexibility to make mutual arrangements and has more tax facilities than, for example, a PLC. On the other hand, the partners are each completely accountable for the financial obligations of the partnership.
The delight and enthusiasm at the start of the partnership typically make partners start a service together. The interest is there, so a fast start can be made.
Not rarely, there is currently work or a project, a client, that provides itself. This is prior to considering the legal type that the collaboration can take. Often there is a division of labor. One is stronger in one location, the other in another. The partners match each other and thus produce a successful organization. Each thinks the other will work just as difficult and attempt just as hard.
What if one believes the other is doing too little? What if one has tax debts? What if one of you gets divorced, does that trouble the other?
Typical is a quarrel between the partners, that a partner is personally stated insolvent or that the general partnership is continued in another legal type. In any case it is recommended to make arrangements about this in a general partnership contract.
The law states a number of situations in which a general partnership ends. If one of these circumstances happens, the general partnership will end instantly. This can only be prevented by making arrangements about this in a general partnership agreement.
A general partnership ends by:
- expiration of the period for which the general partnership was concluded.
- The damage of a property or the completion of the act which is the subject of the general partnership.
- Termination of a partner to the other partners.
- Death, guardianship or insolvency of among the partners.
If a ground for dissolution, as explained above, occurs and there is no continuation, the general partnership is liquified. If a general partnership is liquified it does not right away stop to exist. At that moment the commitment of the partners to work together to accomplish the original purpose of the general partnership ends. Rather, the function of the company ends up being the liquidation of its assets. The general partnership continues to exist with this purpose till the liquidation is finished. Hence, the partners are henceforth bound to that purpose.
Many entrepreneurs pick the legal type of a general partnership when they desire to begin an organization. The general partnership is fairly simple to start, has a lot of liberty to make mutual contracts and has more tax facilities than, for example, a PLC. Common is a quarrel in between the partners, that a partner is personally declared bankrupt or that the general partnership is continued in another legal type. If one of these circumstances happens, the general partnership will end immediately. At that moment the commitment of the partners to work together to accomplish the initial function of the general partnership ends.