Larry O. Brockman, Attorney at Law
Larry O. Brockman
Attorney at Law
Sole Practitioner Location: Swansea, Illinois
Partnerships in Illinois
Under Illinois Law, there are two types of partnerships. A general partnership is governed by the Illinois Uniform Partnership Act, while a limited partnership is governed by the Illinois Revised Limited Partnership Act. When two parties decide to undertake a business transaction, a strong consideration should be to draft a partnership agreement between the parties. There are many factors to take into consideration in drafting a partnership agreement. Some of the issues involved in barking on a partnership are the following:
1. The amount of capital contribution of each partner;
2. How additional capital contribution can be made in the event that his partnership needs additional funds;
3. Whether one partner will be contributing services, skills and experience in lieu of a cash contribution;
4. Loans which may be obtained by one partner against his capital account;
5. Death of partners;
6. Completion by surviving partners of unfinished business;
7. By/sell provision between partners;
8. Liquidation of partnership interests in case of partnership death;
9. The ability of a partner to share his or her interest in the partnership;
10. Valuing the partnership interest;
11. Retirement or withdrawal of a partner;
12. Disability of a partner.
There are many, many other aspects to a partnership agreement that should be considered by those who consider going into business. Call my office for a consultation.
5 Executive Woods Court
Swansea, IL 62226
Phone: 618-233-5052
Fax: 618-233-5396
