What is the difference between shareholders and partnerships?
Shareholders and partnerships represent are two distinct business structures with basic differences. Shareholders are individuals who own shares in a corporation, a separate legal entity. Shareholders influence decisions by voting, they have limited liability, protecting personal assets, a board is put in place to manage day-to-day operations. Shareholders' primarily generate an income through dividends or capital gains, and ownership is flexible. Partnerships involve a relationship between individuals who agree on day-to-day management decisions to operate a business together. Partnerships often include equal decision making authority and do not provide separate legal status. Partnerships provide greater flexibility in operation, but come with a heightened risk in personal liability compared to shareholders in a corporation. A.R.E Law will help offer you professional guidance to assist you in navigating business shareholder and partnership agreements by guiding you through; - Death or Divorce of a Shareholder- Dissolution of the Corporation or Partnership - Ownership Structure- Legal Entity- Liability - Decision Making- Management - Transferability of Ownership - Profit Sharing- Regulation Shareholder and partnership agreements play crucial role in ensuring the professional operation of your business and provide protection to the interests of all parties involved. At A.R.E. Law, we are committed to offering you expert guidance through the process of creating agreements that stand the test of time. Contact us today to book your consultation, take the first step towards building strong business foundations.