Frequently Asked Questions
Bookmark this page to get answers to Frequently Asked Questions!
What Is A General Partnership?
Do I Need Any Licenses Or Permits?
What Do I Need To Start A Business?
Q: What Is A General Partnership?
A: An arrangement in which two or more individuals or other persons
(such as a corporation and an individual) conduct business as "partners",
whether officially or not. In terms of asset protection, general
partnerships can be even worse than sole proprietorships. Anything
that one partner does affects all of the partners, because each
partner of the general partnership is personally responsible for
all obligations of the partnership. Thus each general partner's
exposure to risk is increased by a factor equal to the number of
general partners in the business.
Back to top
Q: Do I Need Any Licenses Or Permits?
A: Whether you need a license or permit depends upon the type of
business you engage in, the location of your business, and federal,
state, county, city, and local rules and ordinances. Some businesses
and professions require a license from the state (for example,
barbers and beauticians, doctors, lawyers, day care providers,
and contractors and building trades persons). Cities and counties
require permits for many business activities (such as construction
or elevator operations permits). In addition, many local governments
require a business license before you start your business (a license
requiring payment of an annual fee or tax to do business in that
city or town).
Business activities are generally highly regulated by government
agencies. Many local governments have information centers for small
businesses to assist with compliance to local, state and federal
Back to top
Q: What Do I Need To Start A Business?
To start a business it is a good idea to have an understanding
of the business, written business plan, a good understanding of
the economics of the business, some experience in a related business,
and enough funds to be able to cover your costs until the business
Before starting a business, it is often a good idea to speak to
an accountant and a lawyer so that you understand the tax and legal
issues and if desirable, structure the business to minimize taxes
and avoid legal problems and reduce the chances for personal liability.
A brief, inexpensive consultation can save you huge amounts of
money, long term and short term! And if you are a startup looking
for financing, you will want to have intellectual property rights
The legal structure of your business is extremely important. State
law enables you to create a legal entity - a separate "identity" from
your own person - under which you can transact business, without
the risk of exposing your assets to any personal liability that
might arise out of your business affairs.
Back to top
The Above FAQ information can be found at Freeadvice.com